Case Studies > How transportation expertise grows sales

How transportation expertise grows sales

Customer Company Size
Large Corporate
Region
  • America
Country
  • United States
Product
  • C.H. Robinson's Inventory Management Systems
  • C.H. Robinson's EDI Communications
  • C.H. Robinson's Executive Scorecards
Tech Stack
  • EDI Communications
  • Real-Time Reporting
  • Inventory Management Systems
Implementation Scale
  • Enterprise-wide Deployment
Impact Metrics
  • Cost Savings
  • Customer Satisfaction
  • Productivity Improvements
  • Environmental Impact Reduction
Technology Category
  • Analytics & Modeling - Real Time Analytics
  • Functional Applications - Inventory Management Systems
Applicable Industries
  • Agriculture
  • Food & Beverage
Applicable Functions
  • Logistics & Transportation
  • Warehouse & Inventory Management
Use Cases
  • Fleet Management
  • Inventory Management
  • Supply Chain Visibility
  • Predictive Replenishment
Services
  • System Integration
  • Software Design & Engineering Services
  • Data Science Services
About The Customer
Western Growers is one of the largest agricultural trade associations in the United States, representing 3,000 members who grow, pack, and ship 90% of the fresh vegetables and 70% of the fresh fruit and nuts in Arizona and California. Members like Gills Onions rely on innovative and flexible transportation solutions to manage shipping capacity and achieve overall consolidation savings. Western Growers' members are deeply involved in the agricultural supply chain, from growing to packing and shipping, and they require reliable and cost-effective transportation solutions to meet the demands of their customers.
The Challenge
When the consolidation of retail and foodservice companies escalated in 2005, the process for transporting fresh produce changed significantly. Shippers were required to provide transportation services due to the shift from customary FOB terms to delivered pricing. This change increased the involvement of shippers in transportation and logistics. Additionally, retailers began requesting year-round availability of produce and local sourcing to reduce food transport miles and increase product vitality. Small and medium-sized shippers struggled to negotiate competitively priced refrigerated services consistently, especially those with less than truckload (LTL) volumes. These challenges were exacerbated during peak shipping periods, such as holidays, when even large shippers faced difficulties in finding transportation capacity.
The Solution
Western Growers partnered with C.H. Robinson in 2006 to develop a unique transportation program for its member shippers. The program aggregates shippers' freight volumes to attract a robust carrier base with customized performance metrics. This allows shippers like Gills Onions to meet customer delivery requirements, attract new customers, and focus on their core business operations. Key elements of the program include customized pricing, extensive LTL capability, high volume surge capacity, and strategic account management. C.H. Robinson's technology provides end-to-end shipment visibility, near real-time reporting through EDI communications, and executive scorecards to analyze on-time deliveries and performance exceptions. Shippers can also outsource transportation procurement and operations to C.H. Robinson, gaining operational flexibility and focusing on their core business.
Operational Impact
  • Participating members can move fresh produce more efficiently and provide consistent service to meet customer requirements.
  • The program enables shippers to sell more products to their customer bases and achieve a more efficient and economical supply chain.
  • Shippers can respond to regional sourcing requests and year-round supply requirements by moving production from traditional growing locations and developing offshore supply sources.
  • C.H. Robinson's asset-light model provides ultimate flexibility, allowing members to ship products quickly and efficiently at the best combination of service and price.
  • Members receive detailed reports to benchmark their performance, including transportation costs by lane, service levels, and cost per case, pallet, and truckload. Special reports also help shippers measure their carbon footprint, contributing to a more sustainable environment.
Quantitative Benefit
  • Potato growers saved nearly a half million dollars over truckload rates during the peak season through strategic contracts negotiated by C.H. Robinson.
  • C.H. Robinson provides weekly pricing information from different growing regions to delivery locations around the country.
  • The LTL and forward consolidation program created by C.H. Robinson includes service centers across the nation.
  • Members benefit from extensive truckload and cross-border expertise between Mexico and the U.S., including a state-of-the-art service center and processing facility in McAllen, Texas.

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