Rich Products, the nation's largest privately held frozen foods company markets over 2,000 products in 75 countries. When they needed a dedicated fleet to increase service levels and drive down costs, they called TLC.
Rich Products views their transportation network as a strategic advantage in the markets where they compete. Their strong history of investment in those fleets has helped the company become a leader in the frozen foods category.
Their continued rapid growth however put increasing pressure on this capital-intensive resource, requiring the company to look at additional transportation growth options. Solutions that risked customer service or resulted in a loss of control were quickly eliminated.
TLC's Supply Chain Optimization and Process Engineering team (SCOPE) analyzed the Rich Products network, weighing all possible transportation solutions. Our recommended solution was a dedicated fleet that would maintain both their high levels of customer service and network control, while giving them the cost savings, overhead reductions, and balance sheet improvement that a well designed dedicated fleet can provide.
Summary
The program took a complex mix of labor scales, lease operators and multiple domiciles and rationalized them around a new network transportation model.
Program Highlights Include
- Reduction in Domociles
- Standardized Labor Rates
- Labor Force Reduced
- Equipment (Tractor/Trailer) Reduction
- Costs Reduced / Service Increased
FINANCIAL DRIVERS
- Improve Balance Sheet
- Lower Overhead
- Remove Distribution Costs