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Sargento Reduces Freight Spend and Improves Visibility
Technology Category
- Application Infrastructure & Middleware - Data Exchange & Integration
- Functional Applications - Transportation Management Systems (TMS)
Applicable Industries
- Food & Beverage
Applicable Functions
- Logistics & Transportation
- Warehouse & Inventory Management
Use Cases
- Fleet Management
- Predictive Replenishment
- Supply Chain Visibility
Services
- Software Design & Engineering Services
- System Integration
The Challenge
To gain control of transportation costs, the company sought to eliminate manual processes and improve order visibility. Sargento’s existing transportation management system (TMS) was not able to meet operational requirements. Orders were planned into shipments without considering cost, service or contractual commitments to carriers, and there was an inability to accurately allocate transportation costs at the order level. Sargento chose to implement a flexible, scalable multimodal transportation management system that would meet their operational needs today and in the future. The company established a list of goals for a new TMS to meet: Integrate with 30 carriers, Ship approximately 3,000 orders per month, Transport an average of 24 million pounds of products per month, Integrate with existing supply chain software, and Straight-through processing of order data via EDI.
About The Customer
Based in Plymouth, Wisconsin, Sargento Foods is a family-owned company that has been an innovator in cheese since 1953. With over 2,000 employees and net sales of more than $1.3 billion, the company manufactures and markets shredded, sliced, and snack natural cheese products to consumers as well as ingredients and sauces to the food service industry. Sargento is known for its commitment to quality and innovation in the dairy products sector, making it a significant player in the food and beverage industry.
The Solution
E2open’s application proved ideal for helping Sargento gain order visibility and eliminate manual processes that did not add value to drive significant process accuracy and efficiency. Using e2open’s Transportation Management for Shippers solution, Sargento is able to automate freight payments, reduce less-than-truckload (LTL) shipments, and improve visibility and allocation of costs. Sargento improved operational efficiencies by eliminating manual processes and non-value-added services. In the past, if a carrier charged an incorrect transportation cost, Sargento did not have the visibility to correct these charges prior to being invoiced for them. Since the implementation of the e2open solution, each carrier has a contract in the contract management module of the system, where their rates are locked and paid accordingly with no discrepancies. Not only has the system helped Sargento manage costs, but the automation has also reduced the manpower required to reconcile payments from 15 hours per week to six hours per week, resulting in a 60 percent reduction in administrative costs for freight payment.
Operational Impact
Quantitative Benefit
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