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Home/The Future of Freight/Customer Spotlights/LaCroix manufacturer sees 900%
faster tendering times digitizing operations with Convoy
Customer SpotlightsNewsThe Future of Freight


LACROIX MANUFACTURER SEES 900% FASTER TENDERING TIMES DIGITIZING OPERATIONS WITH
CONVOY


INSIDE THE TECHNOLOGY PARTNERSHIP WITH CONVOY’S DESIGN AND ENGINEERING TEAM

FreightWaves StaffFriday, March 11, 2022
4 minutes read

 * ITVI.USA
   13,956.520
   
   -70.130
   -0.5%
 * OTLT.USA
   2.918
   
   0.008
   0.3%
 * OTRI.USA
   16.290
   
   -0.270
   -1.6%
 * OTVI.USA
   13,959.020
   
   -61.840
   -0.4%
 * TSTOPVRPM.ATLPHL
   2.990
   
   0.070
   2.4%
 * TSTOPVRPM.CHIATL
   3.480
   
   -0.190
   -5.2%
 * TSTOPVRPM.DALLAX
   1.600
   
   -0.020
   -1.2%
 * TSTOPVRPM.LAXDAL
   2.560
   
   -0.030
   -1.2%
 * TSTOPVRPM.PHLCHI
   2.580
   
   -0.040
   -1.5%
 * TSTOPVRPM.LAXSEA
   3.250
   
   -0.160
   -4.7%
 * WAIT.USA
   124.000
   
   -3.000
   -2.4%

 * ITVI.USA
   13,956.520
   
   -70.130
   -0.5%
 * OTLT.USA
   2.918
   
   0.008
   0.3%
 * OTRI.USA
   16.290
   
   -0.270
   -1.6%
 * OTVI.USA
   13,959.020
   
   -61.840
   -0.4%
 * TSTOPVRPM.ATLPHL
   2.990
   
   0.070
   2.4%
 * TSTOPVRPM.CHIATL
   3.480
   
   -0.190
   -5.2%
 * TSTOPVRPM.DALLAX
   1.600
   
   -0.020
   -1.2%
 * TSTOPVRPM.LAXDAL
   2.560
   
   -0.030
   -1.2%
 * TSTOPVRPM.PHLCHI
   2.580
   
   -0.040
   -1.5%
 * TSTOPVRPM.LAXSEA
   3.250
   
   -0.160
   -4.7%
 * WAIT.USA
   124.000
   
   -3.000
   -2.4%

(Photo: Unsplash)
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1X
BeyondWords

Shippers are increasingly digitizing their operations, as transportation teams
are asked to do more with the same or fewer resources in the current environment
of rising costs, labor shortages and truckload capacity constraints. However,
choosing the right technology partner must transcend a transactional exchange in
order to customize solutions that meet the needs of unique processes and
terminology. 

To understand one such partnership, FreightWaves recently took a close look at
Convoy’s partnership with the logistics arm of Shasta Beverages, owned by
National Beverage, a beverage developer, manufacturer and distributor of brands
like LaCroix with over $1 billion in annual revenue. Shasta has been a
technology design partner with Convoy since 2018 as Convoy was developing its
web-based TMS. Art Hanrehan, Shasta’s executive vice president of operations,
and Logistics Manager Misty Hicks spoke candidly about being a design partner
for Convoy.

Convoy uses a human-centered design approach, which requires deeply
understanding and empathizing with the people you’re designing for. “When we
came and looked at Shasta’s workflow, we looked at it from the perspective of
the people doing the work,” said Ryan Collier, design director at Convoy. “You
can’t really look at customer needs and challenges as just data. So really
getting on the ground and making it observational really helps, and the Shasta
team worked closely with us.”

After multiple visits to Shasta’s operation, the Convoy team observed that while
its manual process was packaged effectively, it wasn’t time efficient. All of
Shasta’s beverages were shipped using emails and spreadsheets. Each load was
also tendered manually one at a time, and despite the fact that multiple orders
go to the same customer and ship from the same plant, there was no way to
consolidate the load-tendering process. Two or three people were using their
entire workdays to build loads. In addition to that, the Convoy team observed
that Shasta’s operational processes and terminology were oriented around
customer orders, not truckload capacity. 

“We brought that perspective into designing the product solution,” said Collier.
“Rather than saying, ‘Tell us what truck you want,’ we said, ‘Show us your
orders. Convoy’s TMS can then suggest how to build efficient truckloads, given
that set of customer orders and constraints.’ We also built an interface to help
them know how full the trucks are and if orders could be combined.” 

Streamlining tendering operations

The Convoy TMS also provided the capability to centralize the tendering
operation. The product made it possible for Shasta to upload its order reports
into the TMS and begin tendering from there. Rather than tender each one
individually, Convoy developed a solution to select multiple orders at the same
time and then choose from a variety of carriers, including Convoy’s in-network
carriers. 

Convoy’s increased visibility into Shasta’s loads also made it easier to bundle
them, helping Shasta improve truck utilization and reduce emissions. After weeks
of fine-tuning and testing the product with the load planners, Shasta
experienced a ninefold decrease in tendering times. 

“We actually tender our loads five days in advance, which is ahead of the
industry,” said Hicks. “Typically the average lead time is three days. As a
design partner, Shasta is working with Convoy to add the functionality of order
and load optimization. We are striving to allow the system to look two weeks
into the future and create trips of bundled orders across the Shasta network,
connecting points that can be revised up until that five-day lead time and then
tendered to carriers for bid. The goal is to improve pickup and on-time delivery
service, control deadhead miles and reduce fuel consumption while at the same
time reducing overall freight cost.”

Carrier performance management

Before launching the TMS, Shasta used more than 130 different carriers; today
the list of active carriers has reduced by 35%. “By being able to identify the
poor performers, we’ve been able to shorten our list of carriers that we use,”
said Hicks. 

In whatever ways possible, the Convoy team tried to push the data back to the
user, especially when it was valuable for decision-making. 

“We brought the carrier scorecards right into the product,” said Collier. “We
just put it on the screen next to the price. If it was a thousand bucks, you’d
also see their on-time performance and tender acceptance rate. Merging data sets
for better decision-making is just part of the culture here at Convoy. The
ability to see this immediate data improves the logistics team’s productivity
and reduces the number of times we need to use the waterfall to get a load
accepted. It also helps us build better carrier relationships by knowing which
carriers are accepting the load tenders and which ones are not.”

While the transportation team at Shasta was Convoy’s primary customer, Convoy
also engaged with the sales team at Shasta, helping them understand how
transportation can be a value driver, as opposed to a cost driver. The pricing
data from the Convoy TMS equips the sales team with accurate estimates for their
customers.

“They can now more quickly tell their customers exactly how much it costs to get
a pallet full of LaCroix delivered,” said Collier. 

Lower carbon emissions 

Optimizing truckload capacity utilization has a lot of benefits, particularly in
this tight market. Helping carriers keep their trucks full reduces carbon
emissions from transportation ⁠— a significant initiative for both companies.
The Convoy TMS also calculates the carbon emissions saved from bundling and
backhauls.  

“Being able to employ inbound shippers as outbound shippers has reduced our
carbon footprint,” said Hanrehan. “We have also built and sourced dedicated
round-trip lanes for several routes, which have provided carriers with very
efficient lanes and fewer deadhead miles. We can plan LTL orders for two-stop
loads before actually offering the load to a carrier. This additional planning
reduces the carbon footprint, improves service to our customers and reduces
overall freight costs. It’s a win-win.” 

This article is published jointly with our partners at Convoy. To view more
Future of Freight content, click here.


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FreightWaves StaffFriday, March 11, 2022
4 minutes read

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