Keystone Foods is a multinational, multiprotein processor for the world’s leading brands, providing fresh and frozen protein products to customers worldwide. Keystone Foods manufactures and processes poultry, beef, fish, and pork, and is dedicated to food safety and quality. The company runs 50 facilities that serve about 6,400 restaurants around the world.
The Keystone Foods Logistics Services Group is part of the Keystone Foods U.S. distribution business, which has four distribution centers servicing the quick-serve restaurant industry. Keystone Food Logistics Services Group stores and ships every item customers require by using a private fleet while handling inbound through contract carriers. Keystone Foods typically handles 500 to 700 loads per week.
Business Process and Problem Definition
Keystone Foods ran several business case scenarios in search of opportunities to grow its business while reducing supply chain costs and determined that centralizing its internal freight and launching a new logistics service would be the most profitable route. Historically at Keystone Foods, freight was managed in a decentralized manner, so the five individual manufacturing facilities managed their own transportation. The company used both asset-based carriers and brokers to handle freight, and lanes consisted of transfers of raw materials between facilities, fresh and frozen food products to customers, cold storage facilities, and inbound ingredients from suppliers.
The lack of visibility and high costs connected with the decentralized transportation planning method prompted Keystone Foods to look at new distribution options. Keystone Foods also had challenges with control and decision-making regarding freight, impacting the ability to choose the best carriers while missing opportunities for backhauls and continuous moves.
Keystone Foods’ wish list for a revamped transportation management system included:
- Visibility into real-time transportation information
- Collaboration with everyone involved in the freight framework
- Centralized data on a common platform
- Ability to benchmark and establish KPIs
- SaaS TMS for faster ROI
- Reduce overall supply chain costs