Ocean Spray’s decision to move to a Managed TMS solution was prompted by carefully monitored metrics. Ocean Spray carefully tracked freight costs and on time delivery, which directly impacted sales.
Ocean Spray is an agricultural cooperative owned by more than 700 cranberry growers in Massachusetts, Wisconsin, New Jersey, Oregon, Washington, British Columbia, and other parts of Canada. Ocean Spray is North America’s leading producer of canned and bottled juices and juice drinks, and has been the best-selling brand name in the canned and bottled juice category since 1981.
Ocean Spray first reviewed software-based solutions but the ROI wasn’t there once the purchase price and maintenance fees were included. A web-based solution was considered but it wasn’t integrated with outbound operations. Ocean Spray finally settled on a Managed TMS solution from TMC: TMS software plus managed services.
TMC, a division of C.H. Robinson Worldwide, Inc., coordinates more than $1 billion of freight for approximately 25 clients worldwide. TMC employs more than 100 transportation experts— process engineers, account managers, TMS power users, and support staff—in its Chicago, Illinois, and Amsterdam offices.
TMC invented and continues to refine Managed TMS—a no- to low-cost approach to the deployment of transportation management system (TMS) technology. TMCs fee-based, pay-as-you-go solutions allow clients to enjoy the full benefits of robust TMS software quickly with almost no interruption to day-to-day operations.
Managed TMS® is not standalone software, and its not traditional 3PL outsourcing. Instead, it brings together the best of TMS software and 3PL expertise. The Managed TMS service operates through a proven formula of success: process engineers + TMS technology + power users.
TMS process engineers are Six Sigma experts who have developed and implemented optimization plans for freight networks across virtually every geographic and vertical market in the world. They collaborate with the company’s team to clearly articulate the current state of your freight network and identify the KPIs that are most important to the company.
Process Engineers draw on years of experience and best practices and convert the company’s KPIs into a well-defined action plan. This plan clearly details the steps needed to move from your current state to your ideal state. Deployment does not signal the end of the relationship with the process engineers. They regularly monitor the actual performance of the network against the plan and continuously look for new opportunities to gain efficiencies or drive new savings.
TMS is an end-to-end solution that provides a full range of functionality, including planning and optimization, execution, business intelligence, and freight payment. It also supports additional services, such as bid optimization, network modeling, yard management, benchmarking, and dock scheduling. Inbound and outbound networks are supported on a global basis.
TMC provides TMS Software as a Service (SaaS). Instead of buying software, paying for upgrades, and owning the services and other infrastructure you would need, you simply pay for what you use. Clients can add and subtract TMS services according to their strategy. The selected technology is delivered over the internet, on demand.
To ensure clients immediately gain maximum benefits from the technology, TMC provides dedicated power users who are located either in a global command center or onsite with the transportation staff. These seasoned transportation experts handle the day- to-day operation of the TMS and the heavy lifting that goes on in the freight network.
On time deliveries quickly climbed from 85 percent to 95 percent. With carriers accepting more than 75 percent of the loads tendered to them, freight costs have been positively affected almost as much as on time delivery. Customized reports provided by TMC help Ocean Spray identify and capitalize on potential cost savings throughout its network.
Reports provide accurate, real-time data that allow Ocean Spray to make decisions throughout the supply chain that can drive down costs. The cost information extracted from TMC’s customized reports also is central to Ocean Spray’s budgeting and pricing activities.
Relationships and outcomes with the company’s carriers are stronger than ever with Managed TMS. Previously allowed providers to choose carriers, negotiate contracts, which resulted in decreased service levels and capacity. Having TMC manage the route guides while Ocean Spray manages the carrier relationships has resulted in better performance, better relationships and better outcomes.