FCMG


FOOD MANUFACTURING


$6 BILLION

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Agropur

Agropur masters freight rates for better cost control

Customer

Agropur Cooperative is a North American dairy industry leader founded in 1938. With sales of nearly $6.0 billion in 2016, the Cooperative is a source of pride to its 3,345 members and 8,000 employees.  Agropur processes more than 13 billion pounds of milk per year at its 39 plants across North America and boasts an impressive roster of brands and products. Agropur Inc. is a subsidiary of Agropur Cooperative.
Agropur Ingredients is a global supplier of ingredients and services developed to create success in the food, beverage and nutritional industries. Whether sourcing ingredients or offering finished products, Agropur Ingredients has vast expertise in health, wellness and functional applications. From flavor to texture, shelf life, processing, nutrient enhancement and technical expertise, Agropur Ingredients has a solution for every customer.

Transporeon offered a service we were in desperate need of for a good price, and has greatly improved our processes and reduced our capacity risk, even in this current challenging environment.

Sean Smith, Supply Chain Director, U.S. Operations 
Agropur

Challenges

  • Manual methods of requesting and analyzing freight rates prevented the company from performing large-scale RFPs, resulting in a disconnected process in which carriers were dictating rates on a shipment-by-shipment basis
  • Inefficient freight assignment system required logistics coordinators to execute shipments using time-consuming phone, email and fax communication
  • Uncontrolled dock scheduling process coupled with limited time and personnel resources made deliveries difficult to predict

Solution

  • RFP Management for a seamless bid process coupled with Rate Management for more control over rates, translating into massive cost savings
  • Fully automated Shipment Execution to streamline freight assignment using the agreed-upon rates from the RFP process
  • Efficient Dock Scheduling processes allow carriers to schedule and maintain their own appointments

Results

stronger carrier relationships
Expectations are managed with a framework for bidding and better understanding rates

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supply chain efficiency
Improved processes using optimization tools built to streamline logistics

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cost control
Significant freight cost savings from using consistent rate structures