Case Study

Leading Multinational Telecoms Company operating across Africa

rking@transnova.co.za (Richard King) — Thu, 26 Sep 2024 09:50:31 GMT

Overview

A prominent telecommunications company operating throughout Africa was encountering significant operational and logistical challenges in its network rollout efforts, impeding its goal to enhance mobile network coverage. To address these issues, a redesign of the operating model was necessary, prompting the client to undertake a digital transformation journey aimed at improving visibility and control across the supply chain.

Leading SA Consumer Goods Company

Admin — Thu, 22 Aug 2024 08:38:46 GMT

R300M+ ($16M+) Logistics Savings over 8 years

Overview

A leading Consumer Goods company in South Africa was looking to reduce costs and optimise supply chain performance. Traditionally, the company had outsourced the bulk of its warehousing and distribution activities to a large third-party logistics service provider but now the company was looking to take back control.

Unilever

Admin — Wed, 14 Aug 2024 12:29:08 GMT

Business Situation

Unilever looking to build an African Transport Control Tower as it insources its transportation management.
Control Tower will operate from South Africa to manage logistics strategy and execution into Africa.
Aim is to build regional capability for transport planning combined with local/in country execution. Strategic objective - to build more loads while travelling less and provide customers with a consistent world class service.
The Transport Control Tower will support the planning and execution of the new routes to market into Africa defined to increase product range and availability in countries.

Transnova's Role

The development of an Africa Transport Control Tower encompassing:
- Inbound, Local and Outbound
- Freight Forwarding & Clearing
Provide Unilever with buying scale and professional transport management.
Consolidation of the supplier base.
Provide expertise on cross border logistics in highly complex African environment.
Develop a controlled route to market.
Design efficient logistic solutions that will enable a competitive landed costs in countries.

Client Impact

Through the implementation of the TMS and Control Tower Unilever was able to improve utilisation (load more) while travelling less (CO2 reduction and cost benefits).
We were able to consolidate the supplier base and leverage procurement scale to secure top tier market related transport rates for Unilever.
The Africa Transport Control Tower has provided Unilever with an improved transportation management service thanks to its ability to leverage regional capability and scale.
Reduced costs and improved customer service levels.
Absolute detail cannot be provided due to signed client confidentiality agreements.

Cimerwa

Admin — Wed, 14 Aug 2024 12:27:39 GMT

Business Situation

CIMERWA is Rwanda’s only integrated cement producer. Established 30 years ago, the firm’s production plant is located in Bugarama, by the South Western border of Rwanda. It is the only company in Rwanda that mines raw materials, produces clinker concentrate and packs and sells cement for general and civil construction. Some of its products are exported to the DRC and Burundi. CIMERWA invested USD 170 million in a new modern dry process production plant at its head office in Bugarama with a capacity to turn out 600,000 tons of cement per year. The plant was commissioned in August 2015. CIMERWA is 51 per cent owned by PPC Ltd, Southern Africa’s largest cement producer. PPC Ltd has been in the cement business for more than 100 years and is a public company listed on the Johannesburg Stock Exchange. More than 70 percent of CIMERWA’s sales were done through 31 distributors, and 6 of those distributors make up 68% of the distributor volumes. The distributor model arose as historically CIMERWA’s value proposition was insufficient to meet the market requirements. The distributor agreements were governed by a contract which binds distributors to volumes targets and exclusivity of distribution of CIMERWA product only. Of the 31 distributors, only two were achieving their volume targets. It had, therefore, become evident that the distributor model had many pitfalls such as disintermediation from the customer, limited control over market pricing, high risk exposure of losing significant volumes if a distributor leaves to join a competitor, increasing shift of power base to distributors and limited levers for CIMERWA to use to increase sales. The Kigali rebate table and ex-factory discounts that distributors enjoy were also prohibitive for small to medium size retailers to buy directly from CIMERWA, and thereby pushing volumes to distributors. In order for CIMERWA to be in a position to better manage sales volumes, customer loyalty programs, market pricing and service and support levels, CIMERWA needed to migrate from the distributor model to that of a delivered service. The structured transition plan was over a 3 month period ending and was concluded by the end of April 2017.

Tiger Brands

Admin — Wed, 14 Aug 2024 12:00:19 GMT

Business Situation

Tiger Brands is the largest manufacturer of branded food products in sub-Saharan Africa. It participates in a broad range of fast-moving consumer goods categories spanning food and home and personal care products. In South Africa, it holds leading market shares across most of the categories in which it operates. In recent years, the group has expanded its footprint into the rest of the African continent, primarily through acquisitions, as well as through the export of its South African brands into new markets. Transnova was initially engaged by Tiger Brands to analyse and review the performance of its inbound supply chain. Transnova re-engineered and optimised Tiger Brands’ inbound logistics, taking costs out of the supply chain and helping the client improve visibility of its inbound spend and processes. The enhancements such as changing from a “delivered” product model to “ex works” product model led to a 15% saving on total inbound logistics costs. Following on this success, Transnova was appointed to establish a centralised Logistics Control Tower to oversee and manage the end-to-end logistics for Tiger Brands. The control tower is operated by an experienced and skilled Transnova team, supported by technology and standard operating processes, with the ultimate goal of driving supply chain visibility and performance whilst ensuring efficiency and cost-effectiveness.

Case Study

Leading Multinational Telecoms Company operating across Africa

Overview

Leading SA Consumer Goods Company

R300M+ ($16M+) Logistics Savings over 8 yearsOverview

Unilever

Business Situation

Transnova's Role

Client Impact

Cimerwa

Business Situation

Tiger Brands

Business Situation

R300M+ ($16M+) Logistics Savings over 8 years

Overview