Agriliance Automating Transportation Mode Selection

Agricultural supplier deploys ShipXpress solution in bid to reduce manual processes, cut costs

Agricultural supplier deploys ShipXpress solution in bid to reduce manual processes, cut costs

St. Paul, MN — June 11, 2004 — Agricultural supplier Agriliance has adopted a supply chain solution from ShipXpress in a bid to reduce its transportation costs, in part by automating the process of selecting the most cost-effective modal options.

Agriliance is the agronomy marketing joint venture formed by Land O'Lakes and CHS, The company supplies crop nutrients, crop protection products, seed and related technical services to farmers and ranchers through local cooperatives and independent retailers in all 50 states, Canada and Mexico.

The company has deployed ShipXpress' RATEmanager solution, which provides Agriliance with ability to select the most cost-effective modal options (truck and rail) in a given lane, along with the most appropriate sourcing options.

ShipXpress said that RATEmanager has been designed to equip customers with the tools to optimize costs and service in the face of inflation, increased service demands, new regulations and constrained capacities by providing real-time, accurate and comprehensive ratings for single-mode and multi-mode shipments.

RATEmanager incorporates the nuances associated with shipping by rail, such as Rule 11 charges, switching costs and transfer costs, helping to empower effective use of rail as a way of containing the cost impact of new hours-of-service rules by optimizing the modal mix.

Tracy Mack, director of logistics at Agriliance, said that, by using the solution, the company had reduced manual cost inquiries by 60 percent while also increasing total inquiries by 15 percent. "We have over a million rate items to consider in an environment where rates and commodity prices are dynamically changing," Mack said. "ShipXpress provides a user-friendly interface to support decision making in real time."

Mack added that RATEmanager's interface and installation toolkit facilitated rapid deployment of the solution. "The resources we needed for deployment were significantly less than for other products we evaluated," Mack said.