Essay about Challenges Faced By Sargento Foods

1024 Words Apr 9th, 2016 null Page
Today, many companies fail to understand their supply chain and what system to implement in fostering growth for their business. Management in many cases fail to understand what system to integrate into their supply chain, however, the companies that do succeed with implementing the right automated system for their company whether it be a yard management system, transportation management system, or even their warehouse management system are able to realize double digit savings. (IBM, 2012) This paper will focus on a particular company, Sargento Foods, who faced a serious challenge in their distribution and planning. This paper will highlight the challenges the company faced and what approach they took to find a solution. As mentioned above, if companies are successful in choosing the right system for their company they are able to realize many benefits and Sargento is the perfect case to prove this statement to be factual. In 2006, Sargento’s management realized that like its fine cheese there was gaps or better yet holes in their transportation process that needed serious changes. The company like many others were dealing with an antiquated transportation management system (TMS), a system that could no longer meet the companies changing operational requirements. (Schulz, 2011) Under the old system costs such as service, or contractual shipments were not being considered and because of this the logistics team would find it difficult to appropriate the right costs.…

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