Growing consumer demand for new beverage offerings, flavors, packaging formats, and sizes is changing the competitive picture for beverage supply chains. SKU proliferation, ever-increasing fulfillment requirements, growing shipping volumes, and varying level of product demands required a large beverage company to reevaluate their logistics strategy. We worked with them to implement Navisphere® technology, automate processes, and implement changes based on network and mode optimization scenarios. The company increased the visibility of their supply chain and significantly improved cycle times, on time delivery, and overall customer service levels.
Data accuracy issues impacted fill rates and on time delivery
This organization had been managing rates and tendered shipments using spreadsheets. This made it difficult to hit delivery dates, keep accurate data, communicate with customers, and hold carriers accountable for their performance. The result was poor fill rates and low on time delivery percentages. The company selected TMC’s Managed TMS® offering. This provided easy technology integration and strong logistics expertise, and enabled the company to retain control of their carrier relationships. Greater visibility into their supply chain drove the changes that would be required to achieve a preferred shipper status with carriers.
Network optimization drives improved relationships and savings
The company realigned corporate functions so that their core carriers, plants, and warehouses could work more closely together to improve service levels, strengthen relationships, and drive network savings. TMC conducted a network analysis and recommended and implemented changes that improved truck utilization and mode selection, resulting in significant savings. Our logistics experts also conducted warehouse optimization, which improved alignment between production facilities, distributor networks, and the company’s carrier base. As the company implemented our recommendations and elected the most optimal production locations, their overall cost of goods improved, and they decreased order-to-delivery cycle time for their customers.
Becoming a preferred shipper
Navisphere gives the company visibility to their entire network performance across all modes of transport. Metrics for cost of goods sold, cost per case, and volume enabled them to efficiently execute during peak seasons, promotions, and holidays. Routine procurement bids, benchmarking, and enhanced carrier management have improved acceptance rates and carrier compliance and decreased routing guide depth, which makes it easier to plan and budget. With improved root cause analytics, the company is improving their carrier and customer relationships, becoming a preferred shipper, and reducing costs—all while improving fill rates and on time delivery to customers.