Blue Yonder Case Studies Sweet Success

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	Sweet Success Blue Yonder

Sweet Success

Blue Yonder

Technology Category	Functional Applications - Transportation Management Systems (TMS)
Applicable Industries	Food & Beverage
Applicable Functions	Logistics & Transportation
Use Cases	Fleet Management Supply Chain Visibility
Services	Software Design & Engineering Services System Integration
Challenge	The Hershey Company, a global leader in chocolate and confectionery, operates a complex and global supply chain. With eight U.S.-based manufacturing facilities, five finished-goods distribution centers, and over 100,000 outbound refrigerated truckloads per year, the company faced the challenge of reducing transportation costs while dealing with increased fuel charges. The company's supply chain had to handle more than two billion pounds in annual throughput in the U.S. and Canada, and its products were sold in more than 90 countries around the world. As part of Project Greenlight, an overall transportation initiative launched in 2007, Hershey decided to invest in transportation-related process and technology improvements that would deliver a high return on investment. Read More
About Customer	Established in 1894, The Hershey Company is the largest producer of quality chocolate in North America and a global leader in chocolate and confectionery. With more than 13,000 employees and revenues in excess of $5 billion, the manufacturer offers iconic brands such as Hershey’s, Hershey’s Kisses, Ice Breakers, Kit Kat, Reese’s and Twizzlers. Hershey products are sold in more than 90 countries around the world. The company operates eight U.S.-based manufacturing facilities and has manufacturing partners across North America. Its five finished-goods distribution centers must handle more than two billion pounds in annual throughput in the U.S. and Canada. Additionally, Hershey ships over 100,000 outbound refrigerated truckloads per year. Read More
Solution	To improve its transportation planning processes, Hershey set objectives to consolidate inbound raw materials with outbound finished goods volume, tender continuous moves, improve capacity utilization, reduce the company’s empty miles/carbon footprint, and generate overall synergies for Hershey and its trading partners. Hershey laid out a two-phased plan in late 2007. The first phase introduced the planning and execution of continuous moves, linking together full truckload movements between Hershey facilities to generate a lower per-mile rate. The second part of the project was designed to take control of select inbound freight from vendors and integrate Hershey’s inbound and outbound transportation operations. To enable these objectives, Hershey upgraded to the latest version of JDA Transportation Planning and implemented JDA Freight Order Management for inbound-load visibility. Hershey partnered with JDA Services to achieve its transportation improvement objectives. Read More Log in to view content
Contents

Technology Category

Functional Applications - Transportation Management Systems (TMS)

Applicable Industries

Food & Beverage

Applicable Functions

Logistics & Transportation

Use Cases

Fleet Management

Supply Chain Visibility

Services

Software Design & Engineering Services

System Integration

Challenge

The Hershey Company, a global leader in chocolate and confectionery, operates a complex and global supply chain. With eight U.S.-based manufacturing facilities, five finished-goods distribution centers, and over 100,000 outbound refrigerated truckloads per year, the company faced the challenge of reducing transportation costs while dealing with increased fuel charges. The company's supply chain had to handle more than two billion pounds in annual throughput in the U.S. and Canada, and its products were sold in more than 90 countries around the world. As part of Project Greenlight, an overall transportation initiative launched in 2007, Hershey decided to invest in transportation-related process and technology improvements that would deliver a high return on investment.

About Customer

Established in 1894, The Hershey Company is the largest producer of quality chocolate in North America and a global leader in chocolate and confectionery. With more than 13,000 employees and revenues in excess of $5 billion, the manufacturer offers iconic brands such as Hershey’s, Hershey’s Kisses, Ice Breakers, Kit Kat, Reese’s and Twizzlers. Hershey products are sold in more than 90 countries around the world. The company operates eight U.S.-based manufacturing facilities and has manufacturing partners across North America. Its five finished-goods distribution centers must handle more than two billion pounds in annual throughput in the U.S. and Canada. Additionally, Hershey ships over 100,000 outbound refrigerated truckloads per year.

Solution

To improve its transportation planning processes, Hershey set objectives to consolidate inbound raw materials with outbound finished goods volume, tender continuous moves, improve capacity utilization, reduce the company’s empty miles/carbon footprint, and generate overall synergies for Hershey and its trading partners. Hershey laid out a two-phased plan in late 2007. The first phase introduced the planning and execution of continuous moves, linking together full truckload movements between Hershey facilities to generate a lower per-mile rate. The second part of the project was designed to take control of select inbound freight from vendors and integrate Hershey’s inbound and outbound transportation operations. To enable these objectives, Hershey upgraded to the latest version of JDA Transportation Planning and implemented JDA Freight Order Management for inbound-load visibility. Hershey partnered with JDA Services to achieve its transportation improvement objectives.

Impact #1	Increased key planning metrics by 30 percent
Impact #2	Improved solution runtime by 400 percent
Impact #3	Expanded continuous-moves capabilities

Impact #1

Increased key planning metrics by 30 percent

Impact #2

Improved solution runtime by 400 percent

Impact #3

Expanded continuous-moves capabilities

Benefit #1	Reduced transportation costs significantly
Benefit #2	Increased operational efficiencies via the expansion of continuous moves across its transportation network
Benefit #3	Realized a 30 percent increase in key planning metrics such as solution quality

Benefit #1

Reduced transportation costs significantly

Benefit #2

Increased operational efficiencies via the expansion of continuous moves across its transportation network

Benefit #3

Realized a 30 percent increase in key planning metrics such as solution quality

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Overview

Sweet Success

Operational Impact

Quantitative Benefit