A beverage company leverages software to optimize logistics

Transforming logistics through innovative carrier management strategies

As the leading developer, manufacturer, and distributor of a wide range of fruit and vegetable juices and drinks, this organization manages over 25 recognized brands in North America. The company strives to provide a best-in-class experience, delivering on customer expectations with exceptional service, high quality, and product innovation. The company employs 2,700 people across 24 offices with production sites across Canada and the United States.

The situation

The company leverages an expansive logistics network in North America to distribute its products and had a long-term relationship with a freight broker who managed and procured its carrier contracts for many years. This put the freight broker in the driver’s seat for control over carrier relationships. The company had no regular and direct interaction with carrier partners, and it had little to no oversight for approving standardized expectations and dynamic/ cost improvement measures.

The challenge

Having various production sites across two countries made it difficult to have a centralized view of its logistics network. The logistics team also experienced inconsistent performance from their broker. Without direct interaction and no direct ownership of the carrier relationship, the company lacked insight into route and cost optimization efforts on its behalf. It aimed to regain control of the interactions among its transport providers.

Furthermore, alignment with market rates became vital. Sitting in the operational back seat, the company observed failed loads re-tendered to the 3PL’s brokerage arm at a premium, exposing an uncomfortable conflict of interest. This was compounded by a significant potential increase in contract rates amidst a market rapidly moving in the shipper’s favor, ultimately eroding trust.

The solution

The company implemented an industry- leading TMS and, using e2open’s logistics expertise with a dedicated team of logistics professionals, gained visibility across its transportation network. The e2open logistics team familiarized themselves with the company’s network and developed relationships within the organization and its carriers.

Now, the company delivers a better customer experience because carriers, customer service reps, and customers reach a dedicated team member who knows the company’s business for a consistent experience. The company connects with its carriers directly to build new relationships and work together to share goals and customer-focused concerns. Through its work with the e2open Logistics as a Service (LaaS) team, the company has found customized opportunities with carriers explicitly designed to meet the company’s KPIs.

The outcome

Since rolling out the TMS, the company has comprehensive visibility into its entire logistics network and has centralized data from its various ERP systems. It has seen on-time performance improvement for some of its biggest customers. One large customer’s OTIF fines were reduced by 65% YOY; OTP fines dropped 73% for another customer from $0.15 per case to $0.04. The company added additional capabilities to benefit its logistics operations, including an integration that gives it a more accurate and regionally based fuel reimbursement system for its carriers. The company is now an industry leader in logistics innovation and has become a shipper of choice to its carriers.

Applications
Transportation Management
Logistics Visibility

Services
Logistics as a Service

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