Hershey Mexico

1. 1© Transplace 2014.
#TPSS2014
Innovative Solutions for the
Mexican Market
Juan Galdo, Hershey Mexico

2. Transplace® TMS Implementation

3. We have to deal with a complex operational environment
 Hershey Mexico® is a subsidiary of The Hershey Company®, the
largest chocolate manufacturer in North America
 Gross Invoice Sales during 2013 was close to $USD 240 MM
 Our portfolio is made of around 400 items grouped in three main
categories: chocolate, sugar & refreshment and chocolate milk
 Products are delivered at approximately 1,660 ship-to locations
 We have contracts with approximately 30 Carriers
 12 different types of vehicles are used to move our loads
 We handle around 17,000 Shipments per year (freight to customers,
interplant and intercompany)

4. Our logistics network covers all the Mexican territory
DC
cross dock
virtual cross dock

5. HME followed a rigorous selection process to choose
our TMS provider
 A multifunctional team was assembled with personnel from HME
Logistics, HME Information Systems and THC Information System
 Five important software providers were targeted and evaluated as
potential vendors
 Five main differentiators were considered when doing the evaluation:
 Based on a strict scoring methodology Transplace® was selected as
our TMS vendor
Vendor capabilities
Functional capabilities
Technical capabilities
Cloud / SaaS capabilities
Value proposition

6. The TMS implementation was completed in an
outstanding time of 4 months and within budget
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Prepared by Janie Winn

7. Vast majority of our key performance indicators have shown
improvements following the TMS implementation
 Key Performance Indicators Results:
 Additional benefits:
 Optimization of load consolidation via an automated tool
 Effective Carrier Tender and POD processes via a Carrier Portal
 Enhanced reporting capabilities
KPI Format 2012 2013
Cost Savings vs. Plan % 3.20
Vehicle Utilization – STO % 73.55 77.83
Vehicle Utilization – FTC % 71.99 73.51
On - Time Delivery % 98.89 98.24
POD Lag weeks 3.45 3.17
SCD – Manual Adjustments % 8.92 8.62

8. Nowadays we are able to effectively measure the
performance of our Carriers
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HME Carrier Ranking Report
# Carrier Name Jan Feb Mar 2014 YTD
1 X955 NAJERA GOYAS MARTIN CARLOS 91.37% 97.23% 96.56% 95.05%
2 X184 ERASMO ISMAEL VALENCIA ESQUIVEL 94.02% 95.25% 95.64% 94.97%
3 X173 WENDY ANAHI PONCE MORAN 90.65% 96.09% 95.97% 94.23%
4 X063 TEJEDA ALANIS MARCO ANTONIO 91.15% 93.98% 97.54% 94.22%
5 X013 PINEDA CHIMAL MARISOL 92.92% 95.00% 93.89% 93.94%
6 X141 DAVALOS OLIVO ARMANDO 90.03% 95.69% 95.99% 93.90%
7 X199 TRT PLUS SA DE CV 87.45% 97.10% 96.83% 93.79%
8 X202 FRANCO LOPEZ JUAN ALFONSO 89.45% 93.96% 94.99% 92.80%
9 X167 MA SOCORRO ROMERO DAVALOS 92.01% 92.56% 92.49% 92.35%
10 X186 ESPARZA ESPARZA ERNESTO 84.04% 96.50% 95.86% 92.14%
11 X129 MORA PEREZ JULIO 87.77% 95.48% 93.07% 92.11%
12 X152 LOZADA ESCAMILLA VICTOR HUGO 85.16% 92.73% 98.19% 92.02%
13 X188 SILVIA JANNETT LEIJA SAUCEDO 87.33% 92.07% 96.07% 91.83%
14 X109 BAUTISTA RULL MARISELA 91.15% 92.09% 92.17% 91.80%
15 X213 APOYO LOGISTICO DEL VALLE DEL SILICIO SA DE 89.86% 87.34% 95.40% 90.87%
16 X050 LEAL PASARAN JOSE JAVIER 94.71% 86.64% 89.28% 90.21%
17 X025 ESPARZA JIMENEZ ANTONIA HIMELDA 83.79% 92.41% 94.25% 90.15%
18 X001 TRANSPORTES AGUILA DE ORO SA DE CV 83.55% 87.84% 94.93% 88.77%
19 X189 AUTO EXPRESS ORIENTE SA DE CV 85.91% 91.69% 88.68% 88.76%
20 X118 MA ELENA FARIAS VILLAFAN 85.26% 92.91% 88.02% 88.73%
21 X171 TRANSPORTES REFRIGERADOS GUZMAN SA DE CV 84.38% 89.56% 90.58% 88.17%
22 X198 ATI LOGISTIC SA DE CV 88.60% 98.24% 73.48% 86.77%
23 X172 VALENCIA DELGADO ARMANDO 88.08% 85.97% 74.28% 82.78%
24 X191 TRANSPORTES UNIDOS CASTAÑEDA SA DE CV 73.22% 90.38% 84.63% 82.74%
25 X134 LOGISTICA MONTES SA DE CV 63.31% 77.28% 90.98% 77.19%
26 X175 MUEBLES Y MUDANZAS SA DE CV 65.95% 88.29% 73.21% 75.82%