BUILDING BETTER FOOD & BEVERAGE SUPPLY CHAINS TOGETHER

Transcription

1 BUILDING BETTER FOOD & BEVERAGE SUPPLY CHAINS TOGETHER

2 STATISTICS Trucks are the most common mode of food transport, moving 70.5% of products. Source: NAFTA From 2012 to 2013, the food and beverage industry saw an increase of 13% in average sales and a 17% increase in average net profits. Source: Weisermazars LLP Food & Beverage Industry Study, 2014 In 2012, the median fuel and energy costs for food transport increased 9%. Source: Weisermazars LLP Food & Beverage Industry Study, 2014 In the U.S. grocery channel, the number of SKUs grew by 50% between 2003 and Source: Food Marketing Institute The global refrigerated transport market is expected to reach nearly $93.7 billion by Source: Markets and Markets 2

3 FOOD FOR THOUGHT: MULTI-LOCATION PROCESSING ON ONE PLATFORM IMPROVES FOOD AND BEVERAGE SUPPLY CHAINS The food industry is very competitive, placing constant pressure on daily load planning and long-term strategic decisions. Seasonality, promotional periods and time-sensitive shelf life all add to the mix, as do multiple processing facilities and silo transportation procurement, making any hope of efficiency a lower priority. LeanTMS helps food and beverage manufacturers spend less energy putting out fires and more energy on holistic transportation management. LeanTMS generates actionable intelligence for data-based cost and service improvements across even the busiest supply chain. From carrier alignment to understanding and addressing the true cost to service, LeanTMS-embedded data allows you to quickly and easily benchmark against best practices and make transportation a competitive asset. Stop guessing. Give your decision makers the actionable intelligence they need to make better supply chain decisions... with LeanTMS. 3

4 WHEN THE SUPPLY CHAINS ARE FOOD CHAINS, LeanTMS IS THE TMS OF CHOICE COMMAND PRODUCTION CUSTOMER STORE PRODUCTION CUSTOMER DC CUSTOMER STORE PRODUCTION CENTRAL WAREHOUSE CUSTOMER DC CUSTOMER STORE SUPPLIER CUSTOMER STORE COPACKER REGIONAL WAREHOUSE CUSTOMER STORE 4

5 Barilla and LeanLogistics work collaboratively. LeanLogistics Managed Transportation Services has taken us to the next level in proficiency, paving the way for continued growth. Director of Logistics & Customer Service, Barilla 5

6 MTS SCALABILITY Barilla Americas is a manufacturer of pasta and pasta sauce products for the retail and foodservice channels. As a fast-growing business, Barilla realized its current transportation management structure was unable to scale and support the pace of growth. Today Barilla utilizes Managed Transportation Services (MTS) to centralize planning, gain control of expenses, and improve productivity. The MTS team has given Barilla standardized transaction processes and best practice transportation management. Both Barilla and the MTS team leverage the power of LeanTMS, a scalable solution with real-time visibility and accurate cost information to ensure that transportation is a positive influence on Barilla s customer service. Barilla has improved carrier performance through active carrier management. In addition, WebSettle freight pre-audit and payment process had increased billing accuracy and reduced required resources. And because LeanTMS has real-time visibility, the MTS team can effectively monitor shipments and service. Additional benefits of LeanLogistics MTS: Benchmarked rates and performance against industry standards Reduced costs while easing operational burdens Correct those locations incurring accessorial Optimize routing, tendering, customer order patterns, multi-stop and direct ship opportunities Identify opportunities for intermodal loads 6

7 The benefits that Rich Products has received from LeanLogistics solutions are more than just rates. We are able to complete rate bids and then take that data to make smarter network decisions, drive utilization of trucks and optimize multi-stop loads. It s more than just rate; it s the ability to drive savings over several different areas of transportation. Director of Transportation, Rich Products 7

8 LeanTMS NETWORK A long-time Managed Transportation Services client, Rich s places a high value on the LeanLogistics Transportation Network, which empowers overall supply chain improvement in a collaborative environment. Accessing LeanTMS, LeanSource procurement technology and LeanDex transportation rate index, Rich s is able to proactively meet capacity needs with visibility, identify and track key customers to provide white-glove service, as well as outperform the market, enabling the company to become a Shipper of Choice. Rich s hosts four to five procurement events a year to secure top carriers while continuing to strengthen those relationships and reduce costs. Rich s relies on LeanLogistics Managed Transportation Services to manage daily operations: Optimizing mode and routing of all shipments Managing carrier selection and ensuring capacity commitments are met Planning load consolidation and optimization, carrier selection as well as capacity commitments Automatically tendering freight to carriers and managing only the exceptions Reviewing unanticipated accessorial and payment anomalies through the automatic payment module, WebSettle Monitoring carrier performance to plan and contract 8

9 We work in a fast-growing marketplace that has unique demands on the supply chain due to the shelf life of the product and our distributed operation. With LeanTMS, we are able to manage transportation from shipment tender through delivery, making service a competitive advantage. National Transportation Manager 9

10 FINANCIAL CONTROL The second-largest bottler of soft drinks in the country operates 17 soft drink and water bottling plants and 103 private and third-party warehouses in 12 states. The logistics group within the company has 16 managers and one LeanLogistics system administrator. Monthly on average, 50 carriers (a combination of private fleet, common carriers and dedicated carriers) move 10,000 loads; 99% of its volume is full truckload. A company-wide study documented that it was costing the company 25 to 28 dollars per invoice to pay freight bills, with 90,000 invoices per year. LeanTMS provides a common platform for on-line shipment and load change procedures, carrier rate management, carrier communication, and appointment scheduling. WebSettle electronic freight settlement assures prompt and correct carrier payment. Before a shipment is tendered, LeanTMS calculates an audit-quality rate. When a shipment is complete, WebSettle verifies the amount due to the carrier (adjusting fuel surcharges, etc.) and automatically schedules payment without the carrier having to submit an invoice. Automating the freight payment process reduced the personnel requirement in accounts payable from five full-time employees to one person for three hours per week and virtually eliminated plant-level review of invoices. By using the functionality of LeanTMS, the company centralized command and control of carrier procurement, planning, and settlement, reducing its annual transportation spend by 8% consistently over a multi-year period. 10

11 Once the extent of the problem was obvious, it was a no-brainer to adopt an automated audit and pay solution. Corporate Transportation Manager 11

12 BUILDING BETTER FOOD & BEVERAGE SUPPLY CHAINS TOGETHER LeanLogistics 1351 S. Waverly Road Holland, MI P A Brambles Company 12