Grocery logistics provider gets accounts in order

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Published on the 20/10/2015 | Written by MYOB

AT A GLANCE

Cardinal Logistics

INDUSTRY

Wholesale & Distribution

BUSINESS OBJECTIVE

Decentralise management reporting
Remove duplication
Automate processes

SOLUTION

MYOB Greentree including HR and product costing
Reporting powered by QlikView

BUSINESS BENEFITS

Cost centre control for site managers
Elimination of re-keying data
Improved data integration with clients and internal systems
Damages and returns process improvements

FOR MORE INFORMATION

MYOB//
E: biggerbusiness@myob.com
NZ: 0800 696 239
AU: 1300 555 110
https://www.myob.com/

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3PL and warehousing expert, Cardinal Logistics, says MYOB Greentree gives it the efficiency and flexibility essential for growth in this competitive industry…

Cardinal Logistics specialises in handling grocery and food related products, consumer goods and pharmaceutical products with a purpose-built contract warehouse and a nationwide haulage and distribution network. The company operates massive warehouses in Auckland and Christchurch, which store and ship perishable goods for major foodstuff manufacturers including Griffins and Mars. The company employs over 300 staff and has grown rapidly since its formation in 1992.

The company provides integrated transport, warehousing, pick-pack, dispatch and inventory management from the point of manufacture or import to the end user.

Facing an increasingly busy 3PL and warehousing operations, it realised the limitations of its accounting system, and turned to MYOB Greentree for an integrated enterprise resource planning solution. As a result, Auckland-headquartered Cardinal Logistics has improved its financial and management reporting, while benefiting from accurate and accessible company-wide information thanks to integrated CRM and HR systems.

The implementation has allowed management to take firm control of the business, while establishing a foundation for future growth.

Situation
Janina Massee, Cardinal Logistics commercial manager, points to a problem which crops up for many busy companies focused on growth. “We’d left our systems behind and they needed to catch up,” she explains.

The company was using an accounting system which was customised with purpose-built systems for transport, containers and warehousing. The system had serious shortcomings, however, which were beginning to hamstring the business with data entry manual and time-consuming, so Cardinal sought a solution which would automate processes, allowing personnel to focus on more important issues to maintain the level of customer service on which Cardinal prides itself.

Cardinal’s fleet of local, regional and long-haul trucks has its own management challenges: freight rates vary by sizes, weights and length of routes.

“When you’re shipping goods out to all areas of the country, you get damages and returns,” Massee explains. “Everything was done in spreadsheets, so customer liaison and invoicing were done by email and print-out.”

The same applied to claims, she adds. “They were just in files, not anywhere where we could start to understand the issues that we needed to sort out and manage.”

In addition to being repetitive, manual work, processing customer claims through physical paperwork led to unnecessary duplication.

MYOB Greentree’s eService module has enabled customers to make claims via the web, and claims are quickly forwarded to the relevant staff. It’s more efficient and offers better documentation. Customers also get better reporting and more timely feedback.

“I wanted our managers to have decentralised control, so they could handle their own budgets and mentor their staff.”
Janina Massee, commercial manager – Cardinal Logistics

“It was diabolical,” Massee says. “We also had no site reporting and financial management was far too centralised. I wanted our managers to have decentralised control, so they could handle their own budgets and mentor their staff. I wanted to be able to send out reports across the whole organisation, so they could understand on their sites what was going on.”

Solution
Cardinal assessed Cardinal assessed options from the incumbent system (Sage), Epicor, NetSuite and SAP en route to its choice of MYOB Greentree. “We went with MYOB Greentree for its excellent functionality, its flexibility and its ease of use,” says Massee. “We saw it could meet all our needs and grow with us – even if we quadruple in size, MYOB Greentree can handle it.”

In addition to delivering a close fit for Cardinal’s required functionality, Massee points to MYOB Greentree’s ability to integrate with specialist logistics systems as a further deciding factor. In so doing, the solution eliminates a considerable amount of manual data entry, freeing up staff to focus on value-adding work rather than re-keying information.

Results
Where Cardinal’s legacy system offered no reporting on the company’s vehicles, MYOB Greentree’s job costing module automatically calculated the return generated by individual trucks, providing an accurate window into profitability. This was just one example of how the system delivered insights into business performance. Another was enabling reporting on cost centres across Cardinal’s various sites.

The live information supplied by MYOB Greentree gives Cardinal an unprecedented view of performance across the business, resulting in better strategic decision-making. “MYOB Greentree enables us to focus on getting everything right,” Janina concludes. “It’s very exciting and encouraging to have such quality information. It has the ability to grow our business and is a delightful system to use.”

“We’re always looking for gains in efficiency and productivity. I’ve used a lot of different software packages, but I’ve never seen anything better than MYOB Greentree,” confirms Massee.

Source: This article was originally sourced from MYOB