Keystone Foods Gains Complete Transportation Visibility With LeanTMS®

Client Profile

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

CENTRALIZED DATA PROVED TO BE AN INNOVATIVE AND SUCCESSFUL ELEMENT IN MOVING TRANSPORTATION MANAGEMENT IN-HOUSE

Process Improvement – SaaS Solution

Keystone Foods selected LeanLogistics LeanTMS® SaaS solution to improve overall supply chain management in a collaborative environment. The solution was easy to implement and required very few internal IT resources. LeanTMS gives Keystone Foods complete transportation planning, execution, settlement, and procurement, as well as transportation visibility and business intelligence.

Keystone Foods uses LeanLogistics LeanTMS to manage the entire freight process, from optimizing mode and routing of all shipments to managing carrier selection while ensuring that capacity commitments are met. Additional benefits of LeanLogistics LeanTMS for Keystone Foods include:

  • Real-time monitoring of the entire freight process — everyone is in the loop, so plants can continue producing and meeting customer demands
  • Orders received automatically and loads tendered to carriers directly through the system
  • Automated processes and reporting, providing access to data that was not previously available
  • Visibility to all carriers and rates in the system, so Keystone Foods knows it is picking the best possible rate for a particular lane
  • Electronic scheduling gives total control of pickup and delivery appointments for each facility and is configurable to a specific schedule and dock
  • LeanLogistics WebSettle, freight payment solution, improves relationships with carriers and drives better performance
  • Easy-to-use system for carriers and other users who are not traditionally computer savvy

Value Delivered

With LeanLogistics, Keystone Foods gains visibility and collaboration with suppliers, cold storage facilities, plants, planners, carriers, and customers. Keystone Foods automates transportation processes — removing paper-based and manual procedures to eliminate redundancy. LeanTMS helped Keystone Foods launch a new logistics business unit while reducing overall supply chain costs, which is a real win-win for the company. Additional benefits for Keystone Foods include:

Improved Visibility: A central data repository enables visibility for analysis of costs and performance measurement to uncover areas for improvement.

Reduced Costs: Keystone Foods saved 5% of overall freight spend and received quick payback of four months.

Increased Collaboration: With all parties in the transportation process having access to the system, Keystone Foods gained insight into how freight impacts operations.

Download the “Keystone Foods Utilizes LeanLogistics to Gain Complete Transportation Visibility” case study.