For Peace of Mind, Turn to TMS from Generix

We met with Adrián Fariña, an engineer specialized in large-scale distribution logistics, supply chain optimization and, more generally, in the operational management of logistics solution providers and Transport Manager at CAPSA (Corporación Alimentaria Peña Santa), a company that produces and markets important brands in the Iberian dairy industry, including Central Lechera Asturiana, Larsa, Ato and Innova Food Ingredients. CAPSA boasts a very complex logistics network, moving between 800,000 and 1 million tons of dairy products each year, coordinating 47 loading points, over 3,500 delivery points, and managing over 85 freight solution providers.

Mr Fariña pointed out that all this activity is handled thanks to Generix Group's TMS solution, which allows CAPSA to coordinate 50,000 to 60,000 shipments per year, with a team of 7 people. In reviewing the benefits his company has gained since adopting Generix's TMS solution, Mr Fariña highlighted the robustness of the TMS platform and the ability to constantly update and refine it, something that is particularly close to CAPSA's heart. In fact, Mr Fariña stressed that the TMS adopted at CAPSA in the early days, two and a half years ago, is nothing like the current one, and that "although it turns out to be a wonderful tool right from the start", it is important to continue to update and enrich it day by day. And it is precisely this ability of the solution to integrate new data and parameterizations even little by little that, in his eyes, makes it extremely interesting, because in this way it adapts easily and quickly to the different needs of each user and to its evolution over time.

In the specific case of CAPSA, Adrián Fariña pointed out that Generix's TMS system has been fully integrated into SAP's ERP, which the company has been using for 14 years now and which had also led to a real revolution in management processes at the time.

Mr Fariña emphasized that human resources remain essential to the company, especially since they are now finally able to deal exclusively with problematic transports or shipments with special conditions. On the other hand, the TMS ensures that most operations run smoothly without the need for intervention by operators, who never lose an overview of the entire process.

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One aspect that the CAPSA manager placed great importance on was the trust he felt he could place in the Generix team tasked with enabling the solution because, he added, "if they leave you stranded in the middle of the job, you're in big trouble."  

Before and after TMS  

During the meeting, Mr Fariña briefly went over the working methods before and after the implementation of TMS within his company, specifying that the current volume and increasing complexity of logistics work would make it impossible to function properly without the solution implemented by Generix.

Before implementation

• The assignment of transport depended solely on the expertise of the operator.
• Skilled personnel had to take charge of day-to-day operations, thus losing sight of processes that could be improved.
• Manual work offered little scope for optimization.
• It was impossible to manage several carriers that exceeded, even if only slightly, the norm.

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After the implementation of the Generix TMS

• The TMS works like a control room and provides a complete view of all the work in progress; it also ensures that most operations run smoothly without human intervention by the operator, who only deals with exceptions.
• The assignment of the laps admits specific exceptions and allows the subdivision of the quotas and the assignment to the suppliers.
• The control allows the preparation of statistics and summaries that make possible an exhaustive general overview of the entire operation.
• The solution also allows the management of internal movements and the sharing of itineraries.
• All data is saved in the cloud, allowing each team member to manage and request transport services simply by using a computer and an internet connection.

TMS and cost reduction

In addition to coping with increasing complexity of services and customer requirements, the main reason why logistics companies adopt TMS systems is precisely the savings from lower costs.

Studies done by Generix indicate that the average savings forecast after adopting TMS solutions reaches 5 or 6% of the average transportation cost.
In the same vein, some studies published by leading industry consultants, such as Supply Chain Digest, ARC Advisory or Gartner, estimate even greater average reductions:

• A savings of 5 to 15% on the total annual transportation cost.
• A 10 to 30% decrease in the overall transportation budget (including operating and personnel expenses).

TMS and the future

This case study demonstrates that automated solutions such as TMS are essential in an industry that is becoming increasingly complex. Radical market changes are taking place that require 3PLs to deliver value, demonstrating their ability to meet increasingly complex customer needs that would simply be unmanageable without the right tools. Companies must be able to evolve with the needs of their users and the markets in which they operate.

Generix Group North America provides a series of solutions within our Supply Chain Hub product suite to create efficiencies across an entire supply chain. From Warehouse Management Systems (WMS) and Transportation Management Systems (TMS) to Manufacturing Execution Systems (MES) and more, software platforms can deliver a wide range of benefits that ultimately flow to the warehouse operator’s bottom line. Our solutions are in use around the world and our experience is second-to-none. We invite you to contact us to learn more.