Streamlining Processes and Technology with a New 3PL Partner and TMS Upgrade

Improving an organization’s logistics management and services involves a complex process. From implementing a robust transportation management system (TMS) to managing shipments across multiple plants, it’s important to have the right technology and solution in place.

In our podcast episode with Candy Heien, Logistics and Trade Compliance Manager of Daikin Applied Americas, we discussed how Daikin streamlined their processes by upgrading their TMS and working with a new third-party logistics (3PL) partner.

 

 

Becoming a shipper of choice

With a vision of becoming a shipper of choice, Daikin had to face challenges and overcome them despite being around for a long time. “We certainly were very probably 20 years of behind times. We had no visibility of our goods inbound or outbound. We basically saw shipments booked and shared spreadsheets. We had no idea when they were coming, when they were leaving.

We had no idea of the costs to analyze shipments, frequencies or any of the activities related to them,” Heien shared.

Their transportation partners advised that to bring their vision to life, they needed to improve their yard management system, appointment setting, and their facilities. They did exactly that for the past three years and are now reaping the benefits of it.

They emphasized the importance of bringing the right partners on board: “I think it’s important that you look for partners that bring expertise and support to the table,” Heien said. “I think the third party was important to us to get the system up as soon as we can, dealing with the business processes that we need to do and help us be better at what we did. I’m not sure we do that differently. But we do know how important that partner was to us.”

 

Benefits of streamlining processes with a new partner

By streamlining their processes and upgrading their TMS, Daikin’s business was transformed. They now have logistics visibility, allowing them to look at the same information at the same time: from bookings and costs to products and shipments.

It also afforded them greater efficiency on the shipping dock, their customer service, as well as their logistics. Reporting and analysis have also become easier.

When asked how Daikin succeeded in upgrading their TMS, Heien said: “You have to listen to the teams on challenges and find solutions. I think listening to challenges that you’ve had before and then certainly once you come up on the technology is you have to involve everyone.

It’s not just a logistics project. It’s a supply chain project, and everyone has to be involved.” Heien also emphasized the importance of getting the buy-in of your leaders and why being courageous is a must. “You really have to understand where you’re going, know that you can make it there to get the heavy lifting done, and enjoy the success.”

Tune in to Down to Freight podcast, where we sit down with transportation, logistics, supply chain, and warehousing subject matter experts to discuss the Digital Transformation Project.