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Alcoa Saves Over $5.7 M Annually to Date with Shippers Commonwealth TMS Program
April 5, 2004 - Richmond VA - For Immediate Release: Alcoa Inc. (NYSE: AA) has determined significant realized and projected savings from automated load planning and optimal routing, load building, and consolidation, with savings of over $5.7 million to date in utilization of the Shippers Commonwealth TMS programs, as its shipment planning optimization enterprise standard.
Since mid-2003, the Shippers Commonwealth TMS solution program has been successfully deployed for automated load building and optimized shipment planning at Alcoa Home Exteriors (4 sites to date); Alcoa Presto Products (4 sites to date); Alcoa Mill Products (2 sites to date); Alcoa Food Service Packaging (for 2 new mixing center sites), with implementations in process or planned for many other business units and sites throughout the Alcoa organization.
These savings represent a significant ROI for Alcoa, with hard freight cost savings in addition to productivity and service improvements, in a highly complex, diverse, and large scale environment. Alcoa uses the Shippers Commonwealth TMS program on an Application Service Provider (ASP) subscription basis under multi-year agreement between the firms.
Savings are expected to further increase significantly as expansion continues. A major implementation is now underway at Alcoa Engineered Products for Cressona PA to expand to multiple sites for this key business unit, and many other business units are in evaluation with plans for implementation of this program. Discussions are also advancing for global use of the Shippers Commonwealth TMS program for Alcoa enterprise outside of North America, and for advanced inbound and other collaborative logistics programs.
The Shippers Commonwealth TMS is fully integrated to Oracle as enterprise ERP system for Alcoa, and is also integrated to many other existing legacy ERP systems throughout Alcoa as migration continues within the company. Implementation time has averaged a record 35 - 45 days per site including full integration, as a breakthrough in rapid deployment, with ongoing life cycle support provided for all sites.
About Alcoa: Alcoa is the world's leading producer of primary aluminum, fabricated aluminum, and alumina and is active in all major aspects of the industry, with over $21.5 Billion in annual revenues, and over 120,000 employees in 41 countries. Further information is available on the Web at www.alcoa.com.
About Shippers Commonwealth: Shippers Commonwealth is the marquee provider of TMS solutions to both the Fortune 1000 and to the mid-market. The company prides itself on bringing the most complete TMS solutions on the most affordable basis to shippers of any size, via its expert help team and value-added solutions programs, tailored to client needs. The Company is proud of the company it keeps, in serving key clients such as Alcoa, Stage Stores, Overnite, North American Salt, Four Seasons, Eveready, Field Container, Metro Canada, and many others. Further information on Shippers Commonwealth is available on the Web at www.shipperscommonwealth.com or by information request to info@shipperscommonwealth.com or phone to 804-474-7700x126.
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