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Implementation of XIRON TCO PDF Print E-mail
In spring 2007, Com China implemented its new XIRON module "Transport Cost Optimiser (TCO)". Since the logistics market is very fragmented in China, the average transportation company has just 1.4 trucks, it is very difficult for shippers to select 'the right' transportation company. These small companies do often not apply to international business rules, have no web presence and provide unstructured prices.

ImageIn this situation, it is very important for shippers to get transparency and to assess the quotations in detail with the objective to find the most cost effective transportation company for each destination under consideration of the shippers transport requirements. XIRON TCO was developed to support exactly this scenario. By taking historical data into account, XIRON TCO simulates the transport cost of each received quotation. This provides a first overview about the cost level of the received quotations.

In addition, XIRON TCO supports the design phase by providing various optimisation methods. The system automatically provides optimised cost models based on parameters. If it is required to find the most cost effective carrier for each shipment or the most cost effective carrier for each region/city, XIRON TCO propose the whole cost model and assign carriers to order or region/city. In addition, it has a functionality to calculate potential savings based on different shipping scenarios, e.g. full truck mode, less than full trucks.

The system provides various KPI in order to assess carriers, it shows the percentages of the savings contributed by each carriers, in each region, in each city compared to the selected reference model.

XIRON TCO is part of the XIRON SCM suite, which supports various supply chain management functionality. It supports inbound and outbound transportation business, inventory management, lead logistics provider arrangements in big operations such as automotive and provides finance functionality. An optional web interface is available in order to track the shipments on line.

XIRON TCO is a great tool supporting you in saving transport costs. Contact us to get more information about XIRON here.
 
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