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GKO FREIGHTSuccess Cases

Company: Lojas Renner

GKO FRETE automates Renner´s freight verification

Software supports company‘s business growth, which jumped from 10 to over 100 stores throughout Brazil. Renner, famous for dictating the fashion trend in a segment known as lifestyle and the second largest clothing department store in Brazil, invests heavily in advertising campaigns with celebrities and in logistics to support their 110 stores spread throughout the national territory. There are, altogether, 103 stores set up in shopping malls and seven stores at central spots in cities located in the South, Southeast, Midwest, North and Northeast areas.

From 2002, the company took a major step in its development: the collections began to be designed based on lifestyles that reflect the values of its customers and composed of their own brand of labels. The stores began to display the products in a coordinated manner, facilitating consumer’s choice and optimizing the time spent on shopping.

In 2005, two great moments marked the company's growth: a public offering of stock shares on São Paulo Stock Exchange and the implementation of freight management software GKO FRETE.

"The solution came to support the organization at a crucial moment, because growth was unstoppable and, with it, the operations became more complex", says César Bugança, Renner logistics operations supervisor.

"From 10 stores we soon jumped to 110 stores spread throughout Brazil, which forced an automation of the transport information for a better negotiation of freights and decision making."

Prior to implementing GKO FRETE, Renner logistics department had their transportation operations data, as well as their carriers’ payments control, entered on Excel spreadsheets. Three people would handle and control the information however, with the fast-paced expansion of their department stores it was expected chaos due to the pressing increase of data being circulated and also the need for more people to monitor this information.

The Software

By anticipating problems and to prepare the operational part of the company, Renner logistics department sought GKO INFORMÁTICA assistance to prevent any disruptions at the retail outlets or a breakdown on transport operations. The GKO FRETE would be used exclusively for freight control and verification, ensuring that rates charged by carriers would be settled in advance between the parts.

The GKO FRETE implementation took place in integration with the corporate software (ERP, Enterprise Resource Planning), used by Renner, which facilitated alignment in regards to the information technology scope and the data flow between all areas of the company - taxation, accounting and logistics, among others. The complex relationship between the accounting area and the logistics aspects can be perceived from its close connection: invoices for freight payment are made based on the delivery notes. Thus, GKO FERETE had to be adapted to include a freight calculation module according to pre-established routes.

At the carrier’s end, as a positive aspect, GKO FRETE offered versatility by sending electronic shipment notes, allowing a reduction of manpower and eliminating the papers from the process, two major causes of errors made during the process.

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Results

More than just a reduction on the number of people involved in the whole operation, Renner logistics obtained other gains after implementing the GKO FRETE. The company's operations supervisor also describes as "extremely positive to the whole operation” the accuracy of the amount paid to carriers and the automation, consequently proving a rapid flow of information between the GKO FRETE and the corporate software for tax collection and payments.

"We have recently achieved the full potential of this tool feature that allows us to generate management reports, providing us with better monitoring of transportation performance and decision-making in different working areas", says Bugança.

"We now have peace of mind as we operate based on reliable data, which enables us to assertively structure our transport opera-tions".

Before the GKO FRETE implementation, communication with carriers for tax information exchange and invoices issuing, as well as information on the amount to be paid, would take them two hours: today, this time has been reduced to 30 minutes, making carriers’ payments more agile and ensuring deliveries and data reliability. The EDI (Electronic Data Interchange) is the most commonly used resource for the interchange of information.

In the future, and as the business continues to grow, Renner logistics department plans to set up a carriers´ pre-invoicing tool, which is currently unavailable due to operational restrictions between the two parts. However, Bugança reckons that these discrepancies will be resolved in a short time and he also informs: "we are already looking into the implementation of a module to evaluate the carriers’ performance".

According to the statement made by the supervisor, it would be another tool contributing to an improved transportation process supported by GKO FRETE.

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