2009 Innovator: Chiquita #10

Chiquita Moves To On-Demand TMS

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Chiquita Moves To On-Demand TMS

Chiquita Brands International needed to consolidate three disparate legacy systems into centralized transportation command and control.

Sourcing both strategically and for specific lanes was time-consuming and didn’t leverage the large annual transportation spend.

The Cincinnati-based marketer and distributor of fresh produce also wanted to maximize the use of its Chiquita-owned containers. With the acquisition of Fresh Express in 2005, Chiquita faced a series of issues relative to its TMS (transportation management system) implementation. First, Fresh Express had a legacy installed TMS package.

Chiquita and Fresh Express conducted an evaluation and determined that LeanLogistics’ On-Demand TMS had superior functionality and operational capabilities.

Holland, MI-based LeanLogistics is a global leader in on-demand transportation technology and supply chain services.

Chiquita and Fresh Express decided to convert Fresh Express to On-Demand TMS. At the same time, Chiquita decided to re-implement the entire company under one corporate structure (three corporate divisions had been implemented separately and as different companies with On-Demand TMS).

Using On-Demand TMS, Chiquita implemented four business divisions onto one system, supporting centralized planning and decentralized execution. This automated the RFP process and directly linked strategic procurement with tactical execution.

Chiquita Express was able to automate routing guides for both the company and its customers, increasing efficiency. With a single corporate implementation, On-Demand TMS provides visibility of all shipments for the entire Chiquita corporation and for its trading partners.

There is also a single integration point for the entire company, simplifying inter-system communications. Asset utilization of the Chiquita-owned containers was increased through planning and managing container backhauls in the banana and commercial businesses.

On-Demand TMS also provides cooperative opportunities between Chiquita and other LeanLogistics customers for increased asset utilization.

Chiquita achieved cost reductions in the Fresh Select business by utilizing the private transportation market functionality to obtain capacity. The Fresh Express division utilizes a forecasting system employing a two-stage commitment with their carriers.

They commit to the shipment before the specific inventory is ordered, because quantities are unknown. When the inventory is allocated, a refinement of the shipment is sent to the carrier, providing them with specific details. On-Demand TMS provides them with the tools to manage this short lead time process.

Chiquita optimizes its shipment plan to create multi-stop consolidations across divisions for LTL shipments moving to the same destination and in the same direction. Chiquita implemented LeanLogistics’ WebSettle and consolidates payments to carriers from their multiple divisions. This means the carrier receives a single payment from the corporation (with an advice of which bills are being paid).

The entire Chiquita corporation gained significant operational efficiencies by bringing all divisions onto a single transportation management platform and implementing common ways-of-working throughout all divisions.