Shipping the Nation’s Most Popular Meat And keeping operations lean with hearty transportation management software
Company Size
1,000+
Region
- America
Country
- United States
Product
- 3G Transportation Management
Tech Stack
- Transportation Management Software
Implementation Scale
- Enterprise-wide Deployment
Impact Metrics
- Cost Savings
- Productivity Improvements
Technology Category
- Functional Applications - Transportation Management Systems (TMS)
Applicable Industries
- Food & Beverage
Applicable Functions
- Logistics & Transportation
Use Cases
- Fleet Management
- Supply Chain Visibility
Services
- System Integration
About The Customer
Koch Foods is one of America’s largest chicken producers. In 2017, the company decided to implement its first Transportation Management System (TMS) after decades of reliance on analog processes. As a $5 billion+ company, with around $200 million in annual outbound freight spend and multiple business units, a TMS was needed to consolidate and modernize transportation processes. The company pursued a dedicated procurement initiative, during which numerous TMS offerings were vetted. In the end, 3G’s TMS was selected because it presented the best-class-in its capabilities, flexibility, and cost.
The Challenge
Koch Foods, one of America’s largest chicken producers, decided to implement its first TMS after decades of reliance on analog processes. As a $5 billion+ company, with around $200 million in annual outbound freight spend and multiple business units, a TMS was needed to consolidate and modernize transportation processes. Koch Foods’ immediate TMS objective was taking a control tower approach to freight transportation. With enhanced visibility into carrier rates & performance, and the ability to isolate time-consuming bottlenecks, the transportation team was able to identify opportunities for more efficient use of resources and provide new sources of value for both Koch and its customers.
The Solution
The data derived from the TMS made it easier for Koch to not only assess carrier performance, but also to manage a larger carrier network. The ability to benchmark paid rates against the broader freight market for all component divisions has led to better, and continually evolving, procurement controls. Simultaneously, a growing broker and carrier network has enabled significant flexibility to use the right mix of contract and spot market rates. Rate analysis, review, and routing guide processes using 3G’s TMS have allowed Koch Foods to identify opportunities to reduce spend. Through a combination of dedicated lanes, rate analysis, procurement controls, and internal spot market performance KPIs the company realized a substantial savings in freight spend within the first year!
Operational Impact
Quantitative Benefit
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