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Blue Yonder > Case Studies > SPDL Reduces Its Annual Logistics Costs by $1.2 Million With JDA Transportation Modeler

SPDL Reduces Its Annual Logistics Costs by $1.2 Million With JDA Transportation Modeler

Technology Category

Functional Applications - Fleet Management Systems (FMS)

Applicable Functions

Logistics & Transportation

Use Cases

Fleet Management

The Challenge

São Paulo Distribuição e Logistica (SPDL), a strategic venture between two of Brazil's largest newspaper groups, O Estado de São Paulo and Folha de São Paulo, was facing the challenge of continuously optimizing their distribution costs in the face of skyrocketing fuel costs and the proliferation of online news sources. SPDL's transportation network serves more than 900 cities and 700,000 last-mile distribution locations, with 1,250 vehicles traveling more than 100,000 kilometers each day. Despite having a mature operation, SPDL was seeking greater levels of efficiency. They were relying on spreadsheets and manual analysis techniques, and there were no additional savings opportunities that they could identify. They had systematically and thoroughly reviewed every truck route, using the tools they had available.

About The Customer

São Paulo Distribuição e Logistica (SPDL) is a strategic venture between two of Brazil's largest newspaper groups, O Estado de São Paulo and Folha de São Paulo. The company was founded in 2002 and has since created a daily distribution operation that serves more than 900 cities and 700,000 last-mile distribution locations, with 1,250 vehicles traveling more than 100,000 kilometers each day. SPDL's main goal is to minimize transportation costs while maintaining the newspaper delivery service levels that readers expect. The company is constantly seeking ways to further optimize its operations and reduce costs.

The Solution

SPDL decided to take its logistics analysis to the next level by implementing JDA Transportation Modeler from JDA Software’s Intelligent Fulfillment™ suite. The company defined an ambitious goal for its JDA implementation: a 5 percent reduction in the costs associated with running trucks from printing sites to country-wide distributors. After using JDA Transportation Modeler for nearly a year, SPDL has already achieved its 5 percent cost-reduction target, and then exceeded it. JDA Transportation Modeler uncovered new opportunities that resulted in a potential total transportation savings of 12.7 percent — representing an annual cost improvement of $1.2 million. A key factor to achieving this high return was the improved speed and depth of SPDL’s analysis, thanks to JDA Transportation Modeler.

Operational Impact

Saved $1.2 million in annual transportation costs
Exceeded initial target of 5 percent cost savings, instead achieving 12.7 percent
Reduced overall travel distances by 20 percent

Quantitative Benefit