Rich Products Case Study - WordPress.comSelling more than 2,000 products in ... Transportation...
Transcript of Rich Products Case Study - WordPress.comSelling more than 2,000 products in ... Transportation...
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
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
v 020912
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