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,
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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. A second challenge the company faced is that the old system was unable to combine its shipments into efficient point-to-point truckload moves. This would end up creating higher costs for the company since shipments were moved through more inefficient and costly routes. (Schulz, 2011) Lastly, the company realized that they were operating under an old system that consisted of manual input while the rest of the world was going digital. All invoices were done manually, and not only was this time consuming and costly, however, it created a higher likelihood of error. At this point, Sargento knew that they had to do some serious changes to their TMS if they wanted to survive this dog-eat-dog world, and so it was that in January of 2006 Sargento began their search for an on-demand software. For Sargento making this decision was not easy because as we have learned in our Sub-systems class, implementing a new software system is very …show more content…
It is important for management to not only understand their supply chain and its needed processes, however, researching is also a key factor. Sargento did not just decide it needed a TMS system and get it installed. They did the necessary research to find the system and vendor that would be the company’s best fit. Keith Hartlaub, who is the general manager of Sargento transportation said “shippers need to have a clear understanding of how their operation functions as well as the attributed of the systems they are considering.” (Schulz, 2011). As stated above Sargento was able to realize its double digit savings and are looking at the future that is ahead of them. After seeing such success with the upgraded TMS, Sargento has planned to more efficiently handle all inbound and outbound shipments going into their warehouse and their idea is to implement an appointment and dock scheduling. This new system will allow Sargento to track and schedule all pick-up and deliveries. Sargento is a growing company and one which is facing an increased amount of sales so to avoid congested warehouses with over 36 trucks they plan on being able to efficiently and effectively service any pick-up and deliveries making everything a smoother process for all employees, carriers, and customers as well. This case study on Sargento’s Transportation Management System has been a
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. A second challenge the company faced is that the old system was unable to combine its shipments into efficient point-to-point truckload moves. This would end up creating higher costs for the company since shipments were moved through more inefficient and costly routes. (Schulz, 2011) Lastly, the company realized that they were operating under an old system that consisted of manual input while the rest of the world was going digital. All invoices were done manually, and not only was this time consuming and costly, however, it created a higher likelihood of error. At this point, Sargento knew that they had to do some serious changes to their TMS if they wanted to survive this dog-eat-dog world, and so it was that in January of 2006 Sargento began their search for an on-demand software. For Sargento making this decision was not easy because as we have learned in our Sub-systems class, implementing a new software system is very …show more content…
It is important for management to not only understand their supply chain and its needed processes, however, researching is also a key factor. Sargento did not just decide it needed a TMS system and get it installed. They did the necessary research to find the system and vendor that would be the company’s best fit. Keith Hartlaub, who is the general manager of Sargento transportation said “shippers need to have a clear understanding of how their operation functions as well as the attributed of the systems they are considering.” (Schulz, 2011). As stated above Sargento was able to realize its double digit savings and are looking at the future that is ahead of them. After seeing such success with the upgraded TMS, Sargento has planned to more efficiently handle all inbound and outbound shipments going into their warehouse and their idea is to implement an appointment and dock scheduling. This new system will allow Sargento to track and schedule all pick-up and deliveries. Sargento is a growing company and one which is facing an increased amount of sales so to avoid congested warehouses with over 36 trucks they plan on being able to efficiently and effectively service any pick-up and deliveries making everything a smoother process for all employees, carriers, and customers as well. This case study on Sargento’s Transportation Management System has been a