Case Studies Land O’lakes Partners with Ruan to Save Money, Limit Liability and Drive Efficiencies.

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	Land O’lakes Partners with Ruan to Save Money, Limit Liability and Drive Efficiencies.

Land O’lakes Partners with Ruan to Save Money, Limit Liability and Drive Efficiencies.

Technology Category	Functional Applications - Fleet Management Systems (FMS)
Applicable Industries	Food & Beverage Transportation
Applicable Functions	Logistics & Transportation Business Operation
Use Cases	Fleet Management Supply Chain Visibility
Services	System Integration Training
Challenge	Years of managing the Department of Transportation (DOT) regulations and liability and safety issues associated with owning a private fleet had Land O’Lakes asking, “Is there a better solution?” After extensive research into cost, ease of transition and potential efficiencies, Land O’Lakes chose to convert its private fleet to a dedicated contract carriage solution with Ruan Transportation Management Systems. Transportation wasn’t an inherent strength for Land O’Lakes, and they lacked the understanding of how to maintain a fleet and develop a long-term maintenance strategy. Allowing a professional trucking organization to manage the liability associated with the fleet freed Land O’Lakes to focus on their core business. Read More
About Customer	Land O’Lakes is a well-known American member-owned agricultural cooperative that focuses on the dairy industry. The company is involved in the production of dairy products, animal feed, and crop seed. With a history dating back to 1921, Land O’Lakes has grown to become one of the largest cooperatives in the United States, serving thousands of farmers and agricultural producers. The company is committed to innovation and sustainability, aiming to provide high-quality products while supporting the agricultural community. Land O’Lakes operates a private fleet to manage the transportation of its products, which includes dairy goods and animal feed, across various locations in the United States. Read More
Solution	After considering several carriers, Land O’Lakes chose Ruan, partly due to the company’s similar people-centric values, as proven by Ruan’s retention of more than 80 percent of Land O’Lakes’ original driver force in the transition. As Land O’Lakes and Ruan worked together to find cost savings, they created efficiencies, such as paring down equipment by 14 percent while still moving the same amount of product, dramatically affecting the bottom line. When a long-standing carrier was unexpectedly unable to serve Land O’Lakes at its Lake City, FL, location, Ruan stepped in to help. Ruan worked diligently to secure feed delivery equipment not readily available in fleets, nor carried at most local truck rental locations. Ruan moved wet kitted tractors from Portland, OR, along with units from Ft. Worth, TX, to the Lake City facility. Additionally, Ruan purchased two new bulk trailers and five used trailers for the operation. The speed of the start-up and Ruan’s flexibility ensured there was no downtime in Land O’Lakes’ daily operations or service interruptions to its customers. Read More Log in to view content
Contents

Technology Category

Functional Applications - Fleet Management Systems (FMS)

Applicable Industries

Food & Beverage

Transportation

Applicable Functions

Logistics & Transportation

Business Operation

Use Cases

Fleet Management

Supply Chain Visibility

Services

System Integration

Training

Challenge

Years of managing the Department of Transportation (DOT) regulations and liability and safety issues associated with owning a private fleet had Land O’Lakes asking, “Is there a better solution?” After extensive research into cost, ease of transition and potential efficiencies, Land O’Lakes chose to convert its private fleet to a dedicated contract carriage solution with Ruan Transportation Management Systems. Transportation wasn’t an inherent strength for Land O’Lakes, and they lacked the understanding of how to maintain a fleet and develop a long-term maintenance strategy. Allowing a professional trucking organization to manage the liability associated with the fleet freed Land O’Lakes to focus on their core business.

About Customer

Land O’Lakes is a well-known American member-owned agricultural cooperative that focuses on the dairy industry. The company is involved in the production of dairy products, animal feed, and crop seed. With a history dating back to 1921, Land O’Lakes has grown to become one of the largest cooperatives in the United States, serving thousands of farmers and agricultural producers. The company is committed to innovation and sustainability, aiming to provide high-quality products while supporting the agricultural community. Land O’Lakes operates a private fleet to manage the transportation of its products, which includes dairy goods and animal feed, across various locations in the United States.

Solution

After considering several carriers, Land O’Lakes chose Ruan, partly due to the company’s similar people-centric values, as proven by Ruan’s retention of more than 80 percent of Land O’Lakes’ original driver force in the transition. As Land O’Lakes and Ruan worked together to find cost savings, they created efficiencies, such as paring down equipment by 14 percent while still moving the same amount of product, dramatically affecting the bottom line. When a long-standing carrier was unexpectedly unable to serve Land O’Lakes at its Lake City, FL, location, Ruan stepped in to help. Ruan worked diligently to secure feed delivery equipment not readily available in fleets, nor carried at most local truck rental locations. Ruan moved wet kitted tractors from Portland, OR, along with units from Ft. Worth, TX, to the Lake City facility. Additionally, Ruan purchased two new bulk trailers and five used trailers for the operation. The speed of the start-up and Ruan’s flexibility ensured there was no downtime in Land O’Lakes’ daily operations or service interruptions to its customers.

Impact #1	Ruan saved Land O’Lakes approximately $500,000 during the fiscal year 2008.
Impact #2	Ruan’s portion of Land O’Lakes transportation budget for 2008 was around $18 million, equating to roughly a 2.8 percent savings in the first full year of operation.
Impact #3	Ruan continued the optimization of the fleet and routes at each location in response to Land O’Lakes needs and sales volumes in 2009 and 2010.

Impact #1

Ruan saved Land O’Lakes approximately $500,000 during the fiscal year 2008.

Impact #2

Ruan’s portion of Land O’Lakes transportation budget for 2008 was around $18 million, equating to roughly a 2.8 percent savings in the first full year of operation.

Impact #3

Ruan continued the optimization of the fleet and routes at each location in response to Land O’Lakes needs and sales volumes in 2009 and 2010.

Benefit #1	Saved Land O’Lakes approximately $500,000 in FY08, equaling 2.8 percent transportation budget savings.
Benefit #2	Creating a tighter radial delivery area saved Land O’Lakes an additional $716,000 over the past two years.
Benefit #3	Optimizations saving an additional $400,000 are being evaluated.

Benefit #1

Saved Land O’Lakes approximately $500,000 in FY08, equaling 2.8 percent transportation budget savings.

Benefit #2

Creating a tighter radial delivery area saved Land O’Lakes an additional $716,000 over the past two years.

Benefit #3

Optimizations saving an additional $400,000 are being evaluated.

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Overview

Land O’lakes Partners with Ruan to Save Money, Limit Liability and Drive Efficiencies.

Operational Impact

Quantitative Benefit