Hettich is a globally renowned hardware accessories brand with a name that is synonymous with quality, innovative design, and customer-orientation. Hettich has four regional delivery centers and one factory in China which are connected to a nationwide distributor network, and the company spends tens of millions on transport costs annually.
Market expansion has always been one of the company’s strategies, and a more efficient product transport offered a potentially huge advantage to expand Hettich’s brand market presence as well as greatly reduce costs. Hettich hoped to build on its traditional model to improve transport efficiency through optimization and innovation. However, carriers offer limited support in this respect, and the actual process of implementing this strategy is rife with difficulties. It was under this scenario that Hettich became a customer of oTMS in 2015 and began implementing the One-TMS omni-channel TMS. The company’s innovative use of oTMS one-stop transport chain management is both a professional and cost-saving measure that lowers transport costs and improves transport efficiency.
In the current economy, high costs in corporate transportation logistics have become the new norm. Since September 2016 in particular, loading regulations have become stricter, leading to higher charges by carriers. Ultimately, shippers have had to bear the lion’s share of rising transport prices. Furthermore, carriers are widely scattered in the transport market, and lower quality providers often have a negative impact on other carriers in the market. It is evident that even with a huge transport market volume, quality transport services are still lacking.
Currently, the company is expanding its market share, and efficient product transport offers a potentially a huge advantage to expand Hettich’s brand market presence while also greatly reducing costs. Therefore, Hettich hoped to build on the traditional model to improve transport efficiency through optimization and innovation. However, carriers offer limited support in this respect, and there are many difficulties in terms of actual project implementation. It was under this scenario that Hettich began to implement the One-TMS omni-channel TMS. The company’s innovative use of the new TMS is both a professional and cost-saving measure that lowers transport costs and improves transport efficiency.
Hettich has a similar bidding process with most companies working under the traditional model, which includes tedious tasks involving a massive amount of emails, phone calls, and Excel calculations which result in an inefficient bidding process and unreliable data. The oTMS one-stop bidding platform offers a more convenient and efficient online price negotiation function, faster and more accurate price comparison calculations, and a fully electronic bidding process. The system helps Hettich better control transport costs during the bidding process with online quotations, price negotiations and comparisons, and even cost comparisons, price adjustment suggestions, bidding strategies, and data-driven bidding analysis.
Bidding has traditionally been a lengthy and complex process, and oftentimes it could take up to 3 months to achieve tangible results. After the introduction of oTMS, Hettich is able to successfully complete the entire bidding processes in just 2 months.
The transparent bidding process helps Hettich evaluate prices and execution skills of suppliers based on real data, mix and match existing carriers, and efficiently meet demands in a way that satisfies both the shipper and carrier. The system’s quotation function consists of an integrated and transparent online process that makes it easier than ever to make calculations. The electronic bidding process is at least twice as efficient as the traditional model and has helped Hettich achieve impressive savings on freight costs.