Rich Products Case Study - WordPress.comSelling more than 2,000 products in ... Transportation...

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Company Overview Rich Products Corporation is the leading supplier and solutions provider to food service, in-store bakery, and retail marketplaces. The founder of the non-dairy segment of the frozen food industry, this 60 year old family-owned company manufactures and markets an extensive variety of products, including toppings and icings, breads and rolls, finished desserts and cakes, pizza dough, sweet goods, beverages, Italian specialties, barbeque, seafood, and appetizers. Rich’s distribution network encompasses over 60 locations, including 19 plants, 35 other production locations, and five regional DCs. Rich’s ships more than 70,000 loads a year (combination of full TL, consolidated TL, and intermodal) and has an annual freight spend of nearly $100 million. Business Process and Problem Definition A complex company like Rich’s needs centralized control, scalability and visibility into processes to better manage and measure transportation execution. Some network locations are involved in the daily transportation planning and execution, while other locations are managed by third party companies leading to significant process and procedure inconsistencies. Furthermore, while carrier usage within lanes is defined periodically through corporate routing guides, the usage isn’t controlled or measured. Additionally, procurement (contracts and carrier negotiation) is performed by corporate management and a third-party company handles freight payment. One of the company’s requirements is to retain strategic control of carrier relationships. Rich’s knew that carriers prefer a direct relationship to the shipper (not mediated by a broker or a third party). In an effort to gain greater control and reduce costs, Rich’s desires to outsource the daily management of transportation and standardize processes. Rich’s defined a list of business imperatives for transportation management: Implement a single source for transportation management and a single platform and database Become a leader in carrier-friendly business practices Provide visibility to issues (with a resulting increase in service levels) Monitor and reducing distribution costs and performance-to-plan Quick Facts Headquarters: Buffalo, New York $2.9 billion annual sales 8,000+ associates worldwide Selling more than 2,000 products in 100 countries Ships more than 70,000 loads a year ... it’s the ability to drive savings over several different areas of transportation. Director of Transportation Rich Products Rich Products Achieves Savings Leveraging Managed Transportation Services Rich Products Case Study Transportation Network SaaS Technology Supply Chain Services Business Challenge A complex company like Rich’s needs centralized control, scalability and visibility into process to better manage and measure transportation execution. SaaS Solution LeanLogistics Managed Transportation Services leverages the SaaS technology platform behind the LeanLogistics Transportation Network to improve service, reduce cost and gain complete visibility into business processes. Rich Products’ Results The benefits the company continues to receive from Managed Transportation Services include: Collaboration Centralized Control Improved Service LeanLogistics 1351 S. Waverly Road Holland, MI 49423 www.leanlogistics.com P 866.584.7280 A Brambles Company

Transcript of Rich Products Case Study - WordPress.comSelling more than 2,000 products in ... Transportation...

Page 1: Rich Products Case Study - WordPress.comSelling more than 2,000 products in ... Transportation Services, Rich’s is able to virtually extend the transportation team, have best practices

Company OverviewRich Products Corporation is the leading supplier and solutions provider to food service, in-store

bakery, and retail marketplaces. The founder of the non-dairy segment of the frozen food industry,

this 60 year old family-owned company manufactures and markets an extensive variety of products,

including toppings and icings, breads and rolls, fi nished desserts and cakes, pizza dough, sweet

goods, beverages, Italian specialties, barbeque, seafood, and appetizers. Rich’s distribution network

encompasses over 60 locations, including 19 plants, 35 other production locations, and fi ve regional

DCs. Rich’s ships more than 70,000 loads a year (combination of full TL, consolidated TL, and

intermodal) and has an annual freight spend of nearly $100 million.

Business Process and Problem Defi nitionA complex company like Rich’s needs centralized control, scalability and visibility into processes to

better manage and measure transportation execution. Some network locations are involved in the daily

transportation planning and execution, while other locations are managed by third party companies

leading to signifi cant process and procedure inconsistencies. Furthermore, while carrier usage within

lanes is defi ned periodically through corporate routing guides, the usage isn’t controlled or measured.

Additionally, procurement (contracts and carrier negotiation) is performed by corporate management

and a third-party company handles freight payment. One of the company’s requirements is to retain

strategic control of carrier relationships. Rich’s knew that carriers prefer a direct relationship to the

shipper (not mediated by a broker or a third party). In an effort to gain greater control and reduce

costs, Rich’s desires to outsource the daily management of transportation and standardize processes.

Rich’s defi ned a list of business imperatives for transportation management:

• Implement a single source for transportation management and a single platform and database

• Become a leader in carrier-friendly business practices

• Provide visibility to issues (with a resulting increase in service levels)

• Monitor and reducing distribution costs and performance-to-plan

Quick Facts

• Headquarters: Buffalo, New York

• $2.9 billion annual sales

• 8,000+ associates worldwide

• Selling more than 2,000 products in

100 countries

• Ships more than 70,000 loads a year

... it’s the ability to drive savings over several different areas of transportation.

Director of TransportationRich Products

Rich Products Achieves Savings Leveraging Managed Transportation Services

Rich Products Case Study

Transportation NetworkSaaS Technology Supply Chain Services

Business Challenge

A complex company like Rich’s needscentralized control, scalability and visibility into process to better manage and measure transportation execution.

SaaS Solution

LeanLogistics Managed Transportation Services leverages the SaaS technology platform behind the LeanLogistics Transportation Network to improve service, reduce cost and gain complete visibility into business processes.

Rich Products’ Results

The benefi ts the company continues to receive from Managed Transportation Services include:

• Collaboration

• Centralized Control

• Improved Service

LeanLogistics1351 S. Waverly RoadHolland, MI 49423www.leanlogistics.comP 866.584.7280A Brambles Company

Page 2: Rich Products Case Study - WordPress.comSelling more than 2,000 products in ... Transportation Services, Rich’s is able to virtually extend the transportation team, have best practices

LeanLogistics1351 S. Waverly Road

Holland, MI 49423www.leanlogistics.com

P 866.584.7280A Brambles Company

Solution LeanLogistics is selected by Rich’s for the comprehensive offering, Managed Transportation Services, which

combines business process outsourcing for transportation with the power of LeanLogistics On-Demand

TMS®. The SaaS solution provides Rich’s with access to the LeanLogistics Transportation Network, which

empowers companies to improve overall supply chain management in a collaborative environment.

Rich’s leverages LeanLogistics Managed Transportation Services to manage daily operations:

• Optimizing mode and routing of all shipments

• Managing carrier selection and ensuring capacity commitments are met

• Planning load consolidation and optimization, carrier selection as well as capacity commitments

• Automatically tendering freight to carriers and managing only the exceptions

• Reviewing unanticipated accessorial and payment anomalies through the automatic payment

module, WebSettle®, including leveraging GreenLanes solutions

• Monitoring carrier performance to plan and to contract

By implementing On-Demand TMS, LeanSource procurement technology and LeanDex transportation rate

index, Rich’s is able to proactively meet capacity needs with visibility, identify and track key customers

to provide ‘white-glove service’ as well as outperform the market enabling the company to become a

‘shipper-of-choice’. Currently, Rich’s hosts four to fi ve procurement events a year to secure top carriers

while continuing to strengthen those relationships and reduce costs. Furthermore, by utilizing WebSettle,

Rich’s transportation process is almost entirely paperless and able to easily track distribution costs and

year over year savings.

Value PropositionRich’s views LeanLogistics Managed Transportation Services as the model of the future for transportation

solutions, replacing both traditional 3PLs and software solutions. The company’s transportation is

managed with SaaS technology, providing better coordination, control and at a lower cost. With Managed

Transportation Services, Rich’s is able to virtually extend the transportation team, have best practices

consistently deployed for their network, apply additional expertise and avoid diverting in-house resources

from critical business priorities.

The benefi ts Rich’s continues to receive from Managed Transportation Services include:

Collaboration - ability to connect plants, warehouses and customer service together with the

transportation team and carriers on a single platform

Centralized Control – SaaS technology provides visibility into the entire supply chain to better manage

the transportation process

Improved Service – business intelligence and smarter data address performance metrics, customer

service and carrier compliance

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Transportation NetworkSaaS Technology Supply Chain Services

“The benefi ts that Rich Products has received

from LeanLogistics’ solutions are more than

just rates. We are able to complete rate bids

and then take that data to make smarter

network decisions, drive utilization of trucks and

optimize multi-stop loads. It’s more than just

rate, it’s the ability to drive savings over several

different areas of transportation.”

Director of TransportationRich Products

Rich Products Case Study