Case Study: Wholesale Grocery
EXPERTISE
“
LeanTMS® provides
us visibility into
performance.
”
Director of Logistics
Quick Facts
•
•
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Industry leading retail grocery
cooperative
Privately held, 50+ member/owners
$11+ billion sales in 2011
Business Challenge
Reduce freight cost per case and scale the
business without expanding transportation
team.
SaaS Solution
LeanTMS® leverages the true SaaS
technology platform behind the
LeanLogistics Transportation Network to
improve service, reduce cost and gain
complete visibility into transportation
processes.
Results
•
•
•
•
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Provided real-time visibility
Enhanced collaboration
Improved scalability
Increased efficiencies
Developed metrics
GROCERY GROUP ASSOCIATES
GAIN COMPLETE VISIBILITY
WITH LeanTMS
®
Client Profile
This privately held company provides innovative solutions for its 50+ food industry
member-owners, typically retail grocery chains in addition to wholesale and food
service companies. The client leverages the collective volume of these companies
to create a competitive advantage by reducing costs and offering winning business
building capabilities. Members have access to a full line of private label services,
knowledge management solutions and logistics services, and represent billions in retail
sales volume with thousands of stores.
The client provides over $11 billion in product sales to the member-owners and
customers in all areas of the supermarket. Member-owners purchase approximately six
billion pounds worth of products annually. The company directly manages about 10%
of the transportation for those products and ships 90% full truckload directly to the
member-owners from 70 distribution centers.
Business Process and Problem Definition
The client recognized a tremendous business opportunity to take control of shipping
a larger percentage of member-owners’ freight. When managing freight, the company
realizes 10 to 15% savings over vendor managed freight. If the company could double
the amount of internally managed freight, it would save the member-owners $500,000
annually. To do this, the organization needed to address several issues including
a limited carrier base, freight rate increases, and a cumbersome transportation
management system that lacked visibility along with metrics reporting. A new
transportation management system was acquired to take advantage of the opportunity
to successfully manage freight in-house.
“Our legacy system was capable of the transaction side of the business, but could not
provide us with any automation or ‘business smarts’ around decision making,” said the
Director of Logistics.
LeanLogistics
1351 S. Waverly Road
Holland, MI 49423
www.leanlogistics.com
P 866.584.7280
A Kewill Company
Case Study: Wholesale Grocery
Process Improvement – SaaS Solution
The company researched TMS vendors and chose LeanLogistics LeanTMS® based on
robust functionality while offering a very competitive price. The true SaaS model utilized
by LeanTMS provides quick and easy access throughout the organization and business
partners. As the company continues to expand carriers and business partners, accessibility
with real-time visibility to transportation information is very important.
Order processing flows directly through LeanTMS and load coordinators have full visibility of
orders for better coordination of shipments. Prior to using LeanTMS, shipment consolidation
took four to five hours a day. With LeanTMS, it takes less than an hour for a savings of three
to four hours per day for the team. LeanTMS builds all shipments for the day, tenders loads
to carriers and releases orders to the warehouses to alert staff of the upcoming workload.
This new automated process enabled by LeanTMS greatly improved efficiency of the
transportation team and reduced 40% of total work time.
“Thanks to LeanTMS®, we have real-time
metrics providing visibility into
performance. Every transaction is
invoiced and settled through LeanTMS
automatically, without paper, which
reduces discrepancies.”
Director of Logistics
Additional benefits of LeanTMS include:
•
Reporting real-time updates available to all parties
•
Automating load tendering to multiple carriers on a lane
•
Providing real-time track and trace of shipments
•
Reducing invoice discrepancies with paperless freight payment process
Value Proposition
LeanTMS PROVIDES
EXPERTISE USING
REAL-TIME METRICS FOR
VISIBILITY INTO FREIGHT
PERFORMANCE
®
LeanTMS provides accessibility across all
business partners and offices. Since the
client acts essentially as a decentralized
organization, having visibility through one
system is vital. With LeanTMS, all metrics
relating to shipments are within one system
versus having to get multiple reports from
individual carriers. Cost and benchmark
metrics are immediate for a real-time
snapshot of company performance. In
addition to visibility benefits, the LeanLogistics true SaaS solution enables easy system
maintenance. Annual system upgrades do not involve internal IT resources.
LeanTMS uses real-time metrics for visibility into freight performance. Every transaction is
invoiced and settled through LeanTMS automatically, without paper, reducing discrepancies.
From a resource perspective, the workload was reduced to the point where it could be
handled by one resource, freeing
up the other resource for a more strategic transportation role.
The benefits continued to receive from LeanLogistics include:
•
Increase Efficiency: LeanTMS automates load building to reduce transportation team
involvement by 40%.
•
Improve Scalability of Business With the Same Resources: LeanTMS handles freight
increases with the same resources.
•
Develop Real-Time Metrics: LeanTMS provides an “anytime” snapshot of company and
supplier performance.
•
Provide Visibility and Enhance Collaboration: All partners have instant access to the
system for real-time visibility into shipments while allowing collaboration with all
LeanLogistics
1351 S. Waverly Road
Holland, MI 49423
www.leanlogistics.com
P 866.584.7280
A Kewill Company
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