LG’s US Logistics Revamp a Taste of what Australia will Face
Logistics software specialist JDA Australia is pointing to key characteristics in the mature North America market as indicators of what is around the corner for Australia’s national retailers, food producers and transport companies.
The company says a recent solution undertaken by LG electronics on the management and movement of its consumer goods in the USA shows how a cleverly devised software platform can deliver better profits and provide complete quantification of every facet of the logistics operation.
Two key issues facing LG management were the lack of accurate and timely information and the need to develop best-practice transportation and distribution management. As a result, the company was suffering from high levels of inaccurate shipment planning, inventory and capacity availability information.
A solution was sought by using an integrated business solution from JDA which amalgamated the strengths of two of its software suites:
- JDA® Transportation & Logistics Management Solutions; and
- JDA® Agile Business Process Platform, now part of JDA® Enterprise Architecture.
Gains for LG were reportedly immediate, highly transparent and quantified, including:
- A recurring eight percent annual reduction in overall transportation and distribution costs;
- Solutions that went live and delivered value after 32 weeks;
- Significant service level and customer satisfaction enhancements;
- Establishment of highly configurable supply chain management architecture to address future growth and regional management demands.
“With JDA transportation management solutions, LG was able to quickly establish integrated workflows between its existing systems infrastructure and logistics management systems,” said Lee Geun An from LG logistics subsidiary Hi-Logistics. “The lead time for deployment was 90 percent faster than that of similar solutions deployed through traditional development and integration methods.”