Case Study: Food & Beverage – Grocery
LeanTMS® provided process improvements and streamlined operations.
Director of Inbound Logistics
Quick Facts • • • •
Nation’s leading family-owned grocery and general merchandise retailer Established in 1934 150 retail facilities throughout Illinois, Indiana, Kentucky, Michigan, and Ohio Combination of private fleet, common carriers, dedicated carriers, and third-party warehouses
Business Challenge All communication with carriers to plan shipments was via phone or fax. Also, all rate and accessorial requests and changes were managed via phone and fax.
SaaS Solution LeanTMS® has simplified and expedited communication with carriers (tendering, order and load change procedures, and carrier rate management). Routing guide management is standardized on one system.
Company’s Results • • • •
Controls 100% of inbound transportation Automated processes for tendering and bidding Reduced transportation expenditures Eliminated manual communication
LeanLogistics 1351 S. Waverly Road Holland, MI 49423
www.leanlogistics.com P 866.584.7280 A Kewill Company
MAJOR GROCER OPTIMIZES INBOUND ORDERS Client Profile The nation’s leading family-owned grocery and general merchandise retailer established in 1934 operates more than 150 retail facilities throughout Illinois, Indiana, Kentucky, Michigan and Ohio. The core logistics group, supporting the three business groups (General Merchandise, Grocery, and Produce), is located at the corporate headquarters. The well-respected chain operates multiple distribution facilities in four main geographic areas and utilizes a combination of private fleet, common carriers and dedicated carriers.
Business Process and Problem Definition Carrier management was very labor-intensive. All communication with carriers to plan shipments was via phone or fax. Also, all rate and accessorial requests and changes were managed via phone and fax. Multiple systems were used to manage carrier rates and routing guides. There was minimal ability to track carrier performance. The optimization process was inefficient and time-consuming, with no ability to optimize shipments across groups. Limited visibility to the status of inbound shipments was a problem for buyers.
Process Improvement – SaaS Solution LeanTMS® has simplified and expedited communication with carriers (tendering, order and load change procedures, and carrier rate management). Routing guide management is standardized on one system. LeanTMS performs shipment optimization and collects all order status information. The Private Transportation Market feature (spot market) facilitates acquisition of additional capacity. The company implemented the LeanTMS Supplier Inbound Management, starting with seasonal goods. Live with numerous major suppliers into 150 locations, the company now receives accurate inbound data for both shipment and inventory planning from these suppliers and has an objective to control 100% of inbound transportation, even if that results in higher freight costs, because inventory control and visibility to inbound goods provides competitive advantage.
Case Study: Food & Beverage – Grocery
Value Delivered The company attained increased manpower efficiencies; logistics planners can handle more shipments because the most urgent transactions are more visible and the other transactions are managed automatically through automated processes for tendering and bidding. Transportation expenditures have been reduced through use of the Private Transportation Market.
“LeanTMS® provided the building blocks for our process improvements as we replaced our manual system and streamlined operations.” Director of Inbound Logistics
By implementing Supplier Inbound Management, the company eliminated manual communication (phone, fax, and email) with suppliers for ready-to-ship information and also eliminated “truck ordered but not used” charges which were incurred historically due to the bad data. Another benefit is accurate data for inbound reporting, e.g., actual ship locations, dates, and quantities ordered versus quantities shipped. Real time performance reporting on carriers and suppliers improves relationship management.
LEANLOGISTICS ASSURANCE OF COST SAVINGS BECAME EVIDENT IN INBOUND MANAGEMENT
LeanLogistics 1351 S. Waverly Road Holland, MI 49423 www.leanlogistics.com P 866.584.7280 A Kewill Company v 050714