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CaseStudy
EXECUTIVE SUMMARY
Customer Name• T.joinTransportationCo.,Ltd.
Country• Taiwan
Industry• Transportationandlogistics
Business Challenge• Improvereliabilityofcommunications
infrastructuretosupportgrowingandcomplexbusinessneeds
• NeedforadvancedcommunicationchannelsbeyondtraditionalPABXsystem
Network Solution• CiscoUnifiedCommunications
Business Value• 20%savingsonmonthlytelecommuni-
cationscosts
• Bettermanagementofdistributednetworkforimprovedoperationalefficiency
• Improvedinformationaccessandinternalcommunications
• Bettercustomerservice
LeadingLogisticsCompanyinGreaterChinaMovesIntoTheSpeedLane.
T.joinTransportationCo.Ltd,oneofGreaterChina’sleadingtransportationandlogisticsprovider,slashestelecommunicationscostsby20percent,improvesoperationalefficiencyandcustomerservicewithCiscoUnifiedCommunications.
T.joinisafirst-tierintegratedlogisticsserviceproviderinTaiwan.Establishedin1954asaless-than-truck-load(LTL)transportationserviceproviderwithjustNT$170,000capitaland10trucks,T.joinhasgrowntobecometheforemostlogisticscentreforlargetransportationanddeliveryinTaiwanboasting5,000employees,3,600trucksandanannualincomeofNT$5,600millions.
Tocreatevalueforitscustomersandshareholders,T.joinhastransformeditselfintoaserviceorientedcompanysinceearly1990s.Nolongerjustatruckingcompany,T.joinofferscompletelogisticsandprofessionaldeliveryservicesfromthetimetheclient’sproductleavesthefactorytothepointitarrivesatitsdestination.
Thiscoversthesimpleone-dayexpressdeliveryservicesforbothconsumerandbusinesssectorstothemorecomplexcustomizedthirdpartylogisticsservicesandintegratedlogisticsthatcombineswarehousing,purchase/saleorderprocessing,inventorymanagementandothervalue-addedservicesexecutedthroughane-JOINelectronicserviceplatform.
T.joinhopestoestablishitselfastheNo.1integratedlogisticsandtransportationserviceproviderintheGreaterChinaregionprovidingefficient,cost-effectiveandconvenientservicetoitscustomers.
Business ChallengeAstheonlylogisticsserviceproviderthatusesalogisticcentresystemandthefirstcompanyinTaiwantoadoptahub-and-spoketrucktransportationsystemtoincreasetheefficiencyofitsdeliverynetworkof160servicedepotslocatedacrossthecountry,T.joinneededtocontinuouslyimplementandutilizeadvancedtechnologysolutionstostayontopofitsexpandingandcomplexoperations.
CaseStudy
“Oneofthereasonsforourrapidgrowthhasbeenourwillingnesstouseleading-edgeinformationtechnologytomakecommunicationsevenmoreefficient,”saidYangZhiwen,InformationCentreManagerforT.join.“WehavealsoexpandedourzoneofoperationstoincludetheGreaterChinaregionsincewestartedour‘InternationalExpressDelivery’in1990andsetupfulloperationsinChinain2001.ThismeansthatourdataandvoicecommunicationsrequirementsalsoneedtoextendbeyondTaiwaneseborders.”
“PriortoSeptember2006,ourcompanyhadbeenusinga10-yearoldnetwork.Unfortunately,aswegrew,thenetworkgaveusmoreandmoreproblems,”explainedYang.“Itwasbecomingincreasinglyunreliableandwaspronetoslowdownsandevenstoppagesduringpeaktimes.Inaddition,itcouldalsonolongersupportourbasicrequirementsofmonitoringreal-timeoperatingprocessesofour160servicedepotsspreadacrossTaiwan.Acommunicationsbreakdownatanyofthesedepotswasbadforbusiness.”
Infact,T.joinhadalreadyexperienceddelaysinitsdeliveryserviceasaresultofcommunicationsnetworkdisruptionatitsservicedepots.Themanagementteamcouldaccessthenecessaryoperationalinformationfromaffecteddepotstofacilitatedecisionmaking.Ontopofthat,thecompany’sexistingPABXvoicesystemdidnotallowthemtoreachtherightpeoplefastenoughtoresolvetheproblems.GiventhewidegeographicspreadofT.join’snetwork,callsovertraditionaltrunklineswerealsoverycostly.Theseissuescompoundedeachotherandquicklyescalatedintohighlyunder-utilisedandmisallocatedresources.
“Whatweneededwasanadvancedandhighlyreliablecommunicationssolutionthatwouldallowustoimproveourinternalvoiceanddatacommunicationsbetweendepotsforbetterserviceanddeliveryquality,withoutincurringhighercosts.Thesystemhadtobeextremelyscalablesothatiscouldexpandwithourbusiness,yeteasytomanagesowecouldperformminorconfigurationsourselves,withminimaldowntime,”Yangremarked.
Network SolutionAfteranexhaustivereview,T.jointurnedtoCiscotorecommendchangestoitscommunicationsnetwork,andtoimplementthecomponentsneededtomeetthecompany’sbusinessneeds.GivenT.join’srequirementsforreal-timevoiceanddatatransmissionoverthesamenetwork,CiscoproposeditsUnifiedCommunicationssystem,andredesignedthecompany’snetworksothatitwouldbeabletoconvergebothvoiceanddataontoasingleinfrastructure.
Ciscoanditslocalimplementationpartner,PeaceSystemsIntegrationCoLtd,designedandinstalledanetworkoveraneightmonthperiodthatconsistedofCiscoUnifiedIPPhonessupportedby100unitsofCisco2801IntegratedServicesRouters(ISRs).Thesystemdeliversbothdataandvoiceonasingle,resilientplatformforfast,scalabledeliveryofT.join’sservicedepotrequirements.
Inaddition,acombinationCiscoCatalyst4500,3750and2950Switchesweredeployedatthecoreanddistributionlayersofthenetwork.Ciscoalsoprovidedstrongtechnicalconsultancysupportandplayedamajorroleintheinitialprogrammingoftheequipmentspecificationsandthenetwork’sfuturelayout.
Business ValueWithinashortfivemonthsoftheimplementationoftheCiscoUnifiedCommunicationssystem,T.joinisalreadyreapingthebenefits.“Thewholeprojectwasdesignedtoachievesavingsinourvoiceanddatacommunications,andtoenablereal-timemonitoringrequirementsforouroperations,”Yangdeclared.“CiscoUnifiedCommunicationshaveachievedbothobjectivesextremelywell.”
Nowthatthesystemisoperational,T.joinisenjoyingavarietyofwide-reachingproductivitybenefitsthroughoutthecompany.
l 20% savings on monthly telecommunications costsThelargestandgreatestsourceofcostsavingscamefromT.join’sdailylong-distancecallingexpenditurebetweenitsdistributedservicelocations.Byusingcost-effectiveVoiceoverIP(VoIP)forinternalcommunications,T.joinreducedthecompany’smonthlytelecommunicationsexpenditurefromNT$1milliontoNT$0.8million.Additionalsavingsalsocamefromtheeliminationofdomesticconferencingtrafficandtollchargesrelatedtovoiceconferencing,aswellasdecreasedITstafftimeforadministration,troubleshootingandmaintenance.“Weareverysatisfiedwiththecostsavingssofar.Infact,ifweweretotakeintoaccounttheopportunitycoststhatwouldhaveresultedfromservicedisruptionsontheoldnetwork,thesavingswouldhavebeenevenhigher,”saidYang.
l Better management of distributed network for improved operational efficiencyThenetworkmonitoringandmanagementcapabilitiesofCiscoUnifiedCommunicationsimprovedthecompany’soverallmanagementefficiency.Yangsaid,“Now,wehaveclearvisibilityonwhat’sgoingoninthenetwork,sothatwecaneasilylocate,isolateandtroubleshootnetworkbottleneckissues.Thisboostsouroperationalandmanagementcapability.”ThisvisibilityhasgivenT.joinagreatersenseofcontrolandenhancedabilitytopre-emptproblemsoveritsnetwork.
“Inmanyways,CiscoUnifiedCommunicationshasresultedinhugesavingsforus.What’smore,thesystemhascreatedaplatformtoexecutenewbusinessstrategiesandexpansionplanssuccessfully.”
-YangZhiwen,InformationCentreManagerforT.join
CaseStudy
l Improved information access and internal communicationsThankstoCiscoUnifiedCommunications,T.joincanenjoyfasteraccesstovitaloperationalinformationatitsservicesdepots.Ontopofthat,T.joinemployeesspreadthroughoutthedistributedenterpriseareabletocommunicatewithreachandcollaboratewithanotherevenmoreeffectively.“Wehaveareal-timeviewofwhat’shappeningatourservicedepots,andouremployeescanreachoneanotherquicklyandeasily.Bothhavehadarealandpositiveimpactonourreactiontimetomeetingcustomerneeds.”
l Better customer serviceT.join’scustomershavealsobenefited.Withgreatervisibilityandfasteraccesstimeoveritsnetwork,thecompanyhasbeenabletoofferitscustomersbettertransparency,higher
Printed in Singapore (04/2007)
optimizationoftheirsupplychaininventory,andshortenedtimetomarket.Inaddition,thenewsystemhascomplementedT.join’sexistingadvancedlogisticscentretooffercustomersup-to-dateinformationonparcelmovements,whichcanbeaccessedthroughtheInternetoronasinglephonecall.ThankstoCiscoUnifiedCommunications,customersarenowabletoreachtherelevantsalesandservicestafffromtheveryfirstcall.
“Inmanyways,CiscoUnifiedCommunicationshasresultedinhugesavingsforus.What’smore,thesystemhascreatedaplatformtoexecutenewbusinessstrategiesandexpansionplanssuccessfully.Wealsodon’thavetoworryaboutthetechnicalaspectsofournetwork,”Yangsaid.“That’stherealvalueofourpartnershipwithCisco.”
For More InformationTofindoutmoreaboutCiscoUnifiedCommunications,gotowww.cisco.com/go/unifiedTofindoutmoreaboutT.joinTransportationCo.,Ltd.gotohttp://www.tjoin.com/e-company.htm