Barilla Handles Company Growth With Managed Transportation Services

Client Profile

Barilla is known worldwide for its family brand of authentic pasta, bakery and sauce products. Barilla Americas is a manufacturer of pasta and pasta sauce products for the retail and foodservice channels. The company operates state-of-the-art pasta manufacturing facilities in Ames, Iowa and Avon, New York. They also import select products directly from Barilla Italy. In order to meet fluctuating demands, the Barilla Americas businesses support their manufacturing with outside manufacturing (co-packers). This is all supported by a regionalized Distribution Center Network which is designed to ensure a high level of service to customers.

Business Process and Problem Definition

With a growing business, Barilla realized the current transportation management structure was unable to scale and support the pace of growth. They also recognized that their resources were not adequate enough to support future growth, and they needed to gain better control of transportation expenses and delivery service. The optimal solution for Barilla was an outsourced Managed Transportation service option using TMS technology to help scale the business, lower overall costs, and improve visibility.

Barilla established a list of goals for the transportation system and services:

  • Gain centralized control of transportation
  • Increase visibility into shipments
  • Enhance real-time reporting
  • Improve scalability for growth
  • Lower transportation costs

BARILLA SCALED ITS TRANSPORTATION MANAGEMENT TO MEET THE DEMANDS OF A GROWING BUSINESS

Process Improvement – SaaS Solution

Today Barilla utilizes LeanLogistics Managed Transportation Services in combination with LeanTMS® to centralize planning , gain control of expenses, and improve productivity. With Managed Transportation Services, Barilla is able to leverage transportation expertise to standardize transaction processes and implement recognized best practices. Managed Transportation Services enables scalable solutions, real-time visibility, and accurate cost information to ensure that transportation is a positive influence on the service experience for Barilla’s customers.

With LeanLogistics Managed Transportation Services, Barilla has improved carrier performance through more active carrier management, which is supported by structured performance reporting. In addition, the Managed Transportation Services utilizes a best practice freight pre-audit and payment process which increases billing accuracy and reduces the resources required. All shipment data is then captured within LeanTMS with real-time visibility, so the Managed Transportation Services team can effectively monitor shipments and service.

Additional benefits of LeanLogistics Managed Transportation Services to Barilla include:

  • Benchmarked rates and performance against industry standards
  • Reduced costs while easing operational burdens
  • The ability to identify locations incurring accessorial charges and apply corrective action
  • Optimized freight routing,tendering,customer order patterns,multi-stop and direct ship opportunities The ability to identify opportunities to convert over the road shipments to intermodal loads

Value Delivered

With LeanLogistics Managed Transportation Services utilizing LeanTMS, Barilla gained centralized
control of transportation with minimal in-house resource. Daily transportation management and administration are outsourced to LeanLogistics while Barilla maintains the carrier contracts and relationships. The company found that through the use of Managed Transportation Services they achieved better planning, execution, and operational efficiencies. In fact, these efficiencies enable them to absorb a 38% increase in loads planned over the last five years, with no additional headcount.

The Managed Transportation Services team utilizing LeanTMS is able to attain a 60% “no touch” tender by using advanced technology to apply the routing. Combined with LeanDex®, they are also able to compare active freight rates to market benchmarks, providing the opportunity to evaluate pricing in real time, and increasing the opportunities for potential savings.

The benefits Barilla continues to receive from LeanLogistics include:

Centralized Control: With a true SaaS technology platform, the ability to consolidate data from all parties provides centralization of the decentralized transportation process.

Increased Visibility and Real-Time Tracking: Real-time access to accurate shipment information increases efficiency and improves customer service.

Improved Scalability: With increased efficiency of the team, Managed Transportation Services is able to handle additional transportation responsibilities without additional resources as the Barilla continues to grow.

Reduced Costs: Use of LeanTMS technology plus best practices with Managed Transportation Services has enabled continued overall freight savings year after year.

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