17 soft drink and water bottling plants and 103 private and third-party warehouses in 12 states. ... Business Process an
Case Study: Food & Beverage – Soft Drinks
EXPERTISE
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LeanTMS® enables us to gain visibility...and improve movement... Director of Logistics
Quick Facts • • •
Operates 17 soft drink & water bottling plants 103 private and third-party warehouses in 12 states Utilizes 50 carriers, moving 10,000 loads
REDUCED FREIGHT COSTS THROUGH TRANSPORTATION CONSOLIDATION AND WebSettle SELF-INVOICING ®
Business Challenge Disparate transportation networks prevented leveraging its large shipment volumes and annual transportation spend. Each plant used a separate, manual process for freight audit and payment.
SaaS Solution LeanTMS® centralized command and control, coordinating shipments across 17 independent business units to maximize equipment use and minimize costs. The Supply Chain Monitor provides visibility of order and load status. WebSettle verifies the amount due to the carrier and automatically schedules payment.
Company’s Results • • • •
Greatly reduced time spent on freight payment process Eliminated plant-level review of invoices Centralized command and control of carrier procurement, planning and settlement Achieved network-wide transportation visibility
LeanLogistics 1351 S. Waverly Road Holland, MI 49423
www.leanlogistics.com P 866.584.7280 A Kewill Company
Client Profile The second largest bottler of soft drinks in the country, this corporation operates 17 soft drink and water bottling plants and 103 private and third-party warehouses in 12 states. In addition to its flagship beverages, the company also distributes complementary soft drinks, iced teas, fruit drinks, tonic water, ginger ale, and bottled water in 19 US states. The logistics group within the company consists of 16 different group 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.
Business Process and Problem Definition The company knew its disparate transportation networks prevented leveraging its large shipment volumes and annual transportation spend. Its business had grown with each plant servicing its own warehouses, but now plants that produced specialty beverages ship across networks. A key requirement was the capability to identify round trip or continuous move opportunities between inbound and outbound freight, thus improving carrier efficiency and reducing costs. They wanted a common platform for all locations to manage carrier rates and contracts and as a means to track carrier performance. In addition, they wanted an online communication tool for tendering, settlement, and accessorial and rate change management to replace the laborintensive phone and fax communication with carriers. Automation of appointment scheduling was also a requirement. Each plant used a separate, manual process for freight audit and payment, taking up to a month before an invoice was sent to the centralized accounts payable department where five full-time employees performed manual data-entry and administration. A company-wide study documented that it was costing the company 25 to 28 dollars per invoice to pay freight bills. This cost for 90,000 invoices per year represented a significant line item in the budget. “Once the extent of the problem was obvious, it was a ‘no-brainer’ to adopt an automated audit and pay solution,” said their Corporate Transportation Manager.
Case Study: Food & Beverage – Soft Drinks
Process Improvement – SaaS Solution The company made managing carrier relationships and forming strong partnerships a key business initiative. The company utilizes LeanLogistics LeanTMS® to centralize command and control, coordinating shipments across 17 independent business units to maximize equipment use and minimize costs. LeanTMS provides a common system for on-line shipment and load change procedures, carrier rate management, carrier communication, and on-line appointment scheduling. The system manages inbound freight and plans round-trip continuous moves between facilities, thus further reducing freight costs. The historical database of accessorials is key financial management information. Supply Chain Monitor provides visibility of order and load status to all interested parties. WebSettle® electronic freight settlement capabilities actualizes paperless self-invoicing and settlement, resulting in rapid and correct carrier payment. The system maintains the rates and terms of the carrier contracts in its database. Before a shipment is tendered, LeanTMS calculates an “audit-quality” rate. When a shipment is complete and delivery confirmed, the payment process begins. WebSettle verifies the amount due to the carrier (adjusting fuel surcharges, etc.) and automatically schedules payment – without the carrier having to submit an invoice. If unanticipated accessorials occur, carriers can still request reimbursement (adding them to the freight bill amount to be paid). As freight bills are authorized for payment (largely automatically), they are batched by WebSettle and forwarded through a system interface to accounts payable. Payment is complete and accurate the first time, without unnecessary paperwork, audits, or due bills. The carrier is willing to relinquish invoicing in exchange for faster payment – usually in about one-fourth of the time. With this on-demand solution, the company deployed the system and started seeing benefits in just 30 days.
Value Delivered
“The web-based LeanTMS® system enables us to partner with carriers and suppliers to gain visibility across our network and improve the movement of raw materials and full goods. Additionally, automating the payment process ensures tighter control while reducing the manual process.” Director of Logistics
THIS CLIENT LEVERAGES LEANLOGISTICS EXPERTISE TO REDUCE COST AND DRAMATICALLY IMPROVE BUSINESS PROCESSES
The company believes that the most significant benefit is to the accounts payable department, which now has a greatly-reduced involvement in the freight payment process. 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. It has also achieved networkwide transportation visibility for all stakeholders. The company has reduced its annual transportation spend by 8% consistently over a multi-year period.
LeanLogistics 1351 S. Waverly Road Holland, MI 49423 www.leanlogistics.com P 866.584.7280 A Kewill Company v 051614
