Rich Products Achieves Savings Leveraging Managed Transportation Services

Client Profile

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 more than 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 reduce distribution costs and performance-to-plan

KNOWING THE TRANSPORTATION INDUSTRY AND THE ASSURANCE OF CONTINUOUS IMPROVEMENT HAS LED TO YEAR-OVER- YEAR SAVINGS

Process Improvement – SaaS 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 LeanTMS®. 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 LeanTMS, 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 five 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 Delivered

Rich’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 benefits 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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