Customer Profiles u C C e s s s t o r y

RedPrairie solutions help CEVA Logistics streamline costs by millions in an industry subject to constant and rapid changes.

Howard Chritchley, Managing Director, CEVA Logistics Asia/Pacific

CEVA LogistiCs

RedPrairie solutions help CEVA Logistics streamline costs by millions in an industry subject to constant and rapid changes.

Howard Chritchley, Managing Director, CEVA Logistics Asia/Pacific

CEVA LogistiCs

CeVA logistics (formerly tNt logistics) is a world leading provider of logistics supply chain solutions and express delivery services. CeVA logistics designs, implements and operates a comprehensive line of turn-key solutions and services in 39 countries in the Americas, europe, Asia and the Pacific across more than 500 warehouses with more than 7.1 million square feet. Delivering value to many customers on a national, regional or global scale in selected sectors, CeVA logistics addresses supply chain challenges from managing raw materials to delivering finished goods to the end user. services include inbound logistics, manufacturing support, outbound logistics, and aftermarket services including reverse logistics.

CeVA logistics proven business over six decades and its commitment to operational excellence enables them to be continually recognised worldwide as an industry leader through numerous awards from industry organisations, media and customers. CeVA logistics is committed to creating superior value for its customers on an ongoing basis by capitalising on economies of scale and optimising the utilisation of assets

and networks. CEVA LogistiCs NEEDED....

When Australias largest telecom-munications and information services company made a strategic decision to focus on its core competencies by outsourcing their logistics network, CeVA logistics was the logical choice. CeVA logistics understands the challenges of managing the complexity and scale of the communications industry, and

quickly realized this would prove to be Australias largest and most complicated outsourcing operation to date. it would push any third-party logistics provider (3Pl) to the extremes in delivering the required capabilities and resourcefulness.

under the new leadership of managing director Howard Critchley, who was brought in to grow the business through strategic supply chain investments, CeVA logistics was primed for the challenge. A seasoned logistics veteran with over 25 years in the industry, Critchley knew CeVA Communications logistics needed to deliver the worlds logistics best practices to seamlessly handle the demands of the telcos three distinct business units including retail, wholesale and cable television.

By assuming control over warehousing and transportation operations for the retail, wholesale and cable businesses, CeVA inherited seven different warehousing and transportation operations with 416,000 square metres of space and 275 people operating 56 trucks. they were also responsible for inventory valued at one billion Australian dollars including 5000 stock keeping units (sKus) ranging from fast-moving and small

consumables to just-in-case items, such as communication towers. they also needed to provide support for more than 12,000 service vans and hundreds of customer service and field service teams spread all over the country.

to handle the complexity and scale of this major customer profitably, CeVA logistics needed to:

streamline and provide ongoing control of the cost structures and assets across the warehouses

manage multi-dimensional warehousing and transportation needs of the distinct business units simultaneously

Consolidate various functions including administration, billing and reporting across logistics operations

Deliver a single pipeline of visibility across the supply chain to all business units

leverage industry best practices, benchmarks and key performance indicators (KPis) to deliver on CeVAs ongoing commitment to operational excellence.

After a thorough search for a strategic partner with extensive logistics expertise, proven solutions, local references, and a reputation for delivering on time and budget, CeVA logistics selected redPrairies Dlx Warehouse best-of-breed warehouse management system. this coupled with the capability to support complex transportation and billing requirements would enable CeVA logistics to run the supply chain for the $22.7B communications giant successfully and cost-effectively both today and in the future.

REDPRAiRiE DELiVERED...

to provide a cost-effective foundation, redPrairie helped rationalize and consolidate the divisional warehouses into CeVA operated distribution centers. Dlx Warehouse provided a turnkey, paperless solution to run all seven locations from a central computer system from CeVAs head office in sydney that integrates seamlessly with CeVAs material handling equipment, radio frequency (rf) devices, vehicles and business systems including sAP.

Within the warehouses, Dlx Warehouse was configured to support the flexibility for each business unit to manage logistics operations independently for distinct communications services for home and business. the

system processes everything from order picking costs and billing to inventory and delivery requirements by retail, wholesale or cable division. for example, CeVA now delivers to the customer a single consolidated weekly bill, split by business unit and reconcilable to each individual order. the system is able to create different rates for receiving, put-away, picking, despatch and storage for the varying sKus. Different business units may share these sKus, so the system has the intelligence to allocate charges accordingly.

on the transportation side, Dlx Warehouse needed to provide the same level of flexibility for varying urgency and geographical needs. Because the telcos support teams are located in every corner of Australia, CeVA needed to manage transport providers that complement CeVA express services. through the integrated Wms-transportation solution, CeVA can handle complex variables including parcel rates, rates per kilometer, and hourly rates for metro, non-metro and regional, and can provide the capability to reverse bill the freight companies. this has greatly streamlined invoice reconciliation and enabled electronic payments. more importantly, CeVA maintains control of client interaction as the single face for payment and accountability.

Because Dlx Warehouse is a fully integrated, web-based solution, CeVA provides visibility across the business units for all fulfilment operations nationwide. By having access to the right information via the right tools at the right time, CeVA and the client can make more effective decisions and introduce operational changes with minimal impact. With access to supply chain intelligence, CeVA can identify performance benchmarks and KPis to continually improve operational costs and business processes to better serve their clients.

tHE REsULts

With redPrairie, CeVA logistics has been able to streamline costs by millions of dollars in an industry subject to constant and rapid change all without compromising service.

According to the Global institute of logistics, the partnership is working excellently and has proven itself as an excellent example of the 3Pl in action with proven cost savings of up to 20% and a supply rate of 99% on-time/in-full. much of the credit for the success of this contract is put down to the supply chain i.t. system supplied by redPrairie. the system has delivered and is constantly being improved.

overall, CeVA is reaping the benefits in the following areas:

RAtioNALisED Cost stRUCtUREs AND oPERAtioNs

they were able to centralise and automate operations across seven warehouses driving more than 20% in savings. they now run a paperless environment with greater flexibility and control over the complex billion dollar inventory. they can administer the high volume operation with hundreds of inbound suppliers and transport companies with just one central accountant supported by one customer service representative. most importantly, they achieved the savings without compromising service.

FLExibiLity

CeVA has successfully achieved the level of warehousing and transportation capability they need to address the unique logistics requirements for three separate business units. their supply chain has the flexibility to handle the individual business processes, constraints, inventory policies, calculations and delivery requirements and the ability to optimize logistics for each business unit independently.

VisibiLiy AND sUPPLy CHAiN iNtELLigENCE

CeVA and their client have real-time visibility across the supply chain. With improved information on order status, inventory levels and costs among other areas, they can more proactively address challenges as they arise minimizing impact on customer satisfaction. this level of supply chain intelligence including KPis and reports enables CeVA to continually refine best practices to ensure operational excellence into the future.

sUMMARy

since 2000, when Critchley joined and made one of his first strategic decisions to support the telco with redPrairies supply chain solutions, CeVA logistics business has grown more than 350%. According to Critchley, more than five years into our redPrairie relationship, the product continues to deliver as promised. We are now regarded, on most of the matrices that CeVA logistics uses globally, as a mature business unit and one that leads the field in it, business development and account retention.

With redPrairie, CeVA logistics has a partner to help them optimise future supply chain investments, grow revenue opportunities and differentiate themselves from other outsourced logistics providers. Aside from being continually recognized as a logistics leader in Australia, CeVA logistics wants to continue the growth rate and double the business again over the next three to four years. With this kind of momentum, they are looking to effectively create the same scale and quality of organisation that they have in Australia, in Asia.

RedPrairie Corporation

Level 9, 53 Walker Street

North Sydney, NSW 2060

Australia

+61 2 8923 6272

+61 3 9861 8502

www.redprairie.com

FR +33 1475 197 46

BE +32 54 31 86 10

NL +31 40 230 2500

UK +44 1494 486 500

DK +45 3263 0000

US +1 888 547 9670

INDIA +91 80 2649 4052

CHINA +86 21 5230 2711