Case Studies
Sargento Reduces Freight Spend and Improves Visibility
Overview
Application Infrastructure & Middleware - Data Exchange & Integration Functional Applications - Transportation Management Systems (TMS) | |
Food & Beverage | |
Logistics & Transportation Warehouse & Inventory Management | |
Fleet Management Predictive Replenishment Supply Chain Visibility | |
Software Design & Engineering Services System Integration | |
Operational Impact
Accruals are done as soon as the product is loaded at the distribution center. The billing information is fed to the finance department and the accrual of transportation costs is done in real-time. Accessorial costs that occur during delivery are captured as part of the invoicing process and are also allocated down to the order level. This helps to ensure the real cost of freight is captured for each customer. | |
With e2open, the company is now able to evaluate charges during the year to better determine what the customer charges should be the following year, taking into account the back-end fees that each customer was accumulating. This allows Sargento to accurately allocate costs back to their customers and helps ensure profitability. | |
Prior to the implementation of e2open, Sargento was performing 10 percent of its shipments via LTL. With the visibility provided by the e2open TMS, the company is able to convert more of their shipments into full truckload (FTL), with only four percent now being shipped as LTL. | |
Quantitative Benefit
Reduced the manpower required to reconcile payments from 15 hours per week to six hours per week, resulting in a 60 percent reduction in administrative costs for freight payment. | |
Prior to the implementation of e2open, Sargento was performing 10 percent of its shipments via LTL. With the visibility provided by the e2open TMS, the company is able to convert more of their shipments into full truckload (FTL), with only four percent now being shipped as LTL. | |