2009 Innovator: SunnyD #2

SunnyD Saves Costs, Increases Accuracy With TMS

2009innovatorsunnyd2 10255831

SunnyD Saves Costs, Increases Accuracy With TMS

After SunnyD Beverages Co. was sold from Procter & Gamble to J.W. Childs in 2004, the company was charged with developing a new technology and business infrastructure—including its transportation and shipment system—in less than 12 months.

At the time, Cincinnati-based SunnyD did not have private or dedicated fleet service to its North America customer base, and existing carrier contracts were about to expire as capacity was not secure. The beverage company needed a smooth transition to help ensure the correct products would be on store shelves at the right time.

Additionally, after acquiring Elations, Fruit2O and Veryfine in 2007, SunnyD needed to manage the transportation management for these new brands, which included dry van capacity—a first for SunnyD.

To manage these supply chain changes, SunnyD decided to completely outsource its logistics management. This decision allowed SunnyD to focus on its core competency of producing juice-based drinks and allowed a third party logistics provider to leverage its people, processes and technology to effectively manage the transportation function.

SunnyD also moved to a new ERP (enterprise resource management) system to achieve complete transactional automation.

After an extensive RFP (request for proposal) process, SunnyD selected Dallas-based Transplace as its logistics provider. By leveraging Transplace’s people, processes and technology, SunnyD was able to establish a transportation network and begin working with proven technology immediately.

Transplace’s Transportation Management Solution (TMS) controlled the planning and execution for all shipments from SunnyD plants to retail locations and mass merchandisers nationwide.

Through Transplace’s Collaborative Bid Module (CBM), SunnyD was able to lock in rates and establish committed carrier capacity for an estimated 30,000 annual refrigerated loads. A routing guide was also developed providing reputable, dependable carriers at all locations nationwide.

Transplace Scenario Pro Technology (SPT) provided optimization solutions such as mode selection, LTL consolidation, carrier assignment, continuous move mating and shipment routing. This tool was essential for Transplace engineers to analyze and develop solutions that were specific to SunnyD’s individual needs.

Moving to the ERP system allowed SunnyD to achieve 100 percent transaction automation and to cut logistical ties with P&G four full months ahead of schedule. Outsourcing its logistics management to Transplace increased visibility and they were able to maintain delivery cost despite being a stand alone company. There were no significant issues at cutover on the transportation part of the project.

As SunnyD’s relationship with Transplace continues to grow, so does the company’s savings. Utilizing Transplace’s market knowledge and negotiations the new dry van business saw a 20 percent savings compared to the market average. A rebid of the refrigerated business utilizing Transplace’s Collaborative Bid Module yielded 10.6 percent savings.

Increased use of intermodal has resulted in $400,000 in annual savings and the use of a dedicated fleet in the Los Angeles area, with the SunnyD logo on the trailers, has yielded annual savings of over $100,000 per year.

Additionally, consolidations of loads has saved over $500,000 per year.