HP Hood LLC

Meeting customer demands of 99.6 percent on-time delivery

Published on 12 Jan 2012

Validated on 15 Jan 2014

"For as much information you put into Sterling TMS, you get twice as much out for analysis. The more Sterling TMS is used and integrated, the more powerful it becomes to every aspect of the business." - Heidi Henderson, Logistics Analyst, HP Hood

Customer:
HP Hood LLC

Industry:
Consumer Products

Deployment country:
United States

Solution:
Commerce Solutions, Smarter Commerce

Overview

Founded in 1846, HP Hood LLC is one of the largest branded dairy operators with 16 manufacturing plants throughout the United States. In its traditional home territory of New England, the company’s lines of milk, cream, ice cream, cottage cheese, and sour cream regularly rank number one in the six-state area. HP Hood has a broad customer base from grocery warehouses to convenience stores; managing approximately 150,000 annual shipments across 12 processing plants and 22 distribution centers.

Business need:
With multiple acquisitions, there was a need for a unified transportation management process throughout their supply chain.

Solution:
HP Hood implemented Sterling Transportation Management System (Sterling TMS) in 2002, which provided a logistics network of thousands of carriers, along with the capability to automate the entire transportation management process.

Benefits:
• Provides complete visibility into the entire transportation process, enabling real-time decisions during order to delivery cycle • Increased on-time deliveries to 99.6 percent • Reduced stock-outs, resulting in continued trust of customers • Streamlined freight payment process to 95 percent automated • Reduced LTL shipments by 20 percent

Case Study

Customer background

Founded in 1846, HP Hood LLC is one of the largest branded dairy operators with 16 manufacturing plants throughout the United States. In its traditional home territory of New England, the company’s lines of milk, cream, ice cream, cottage cheese, and sour cream regularly rank number one in the six-state area. HP Hood has a broad customer base from grocery warehouses to convenience stores; managing approximately 150,000 annual shipments across 12 processing plants and 22 distribution centers.

Business challenge
Over the last few years, HP Hood acquired multiple companies; growing from 1500 employees to over 4000 employees. Many of the acquired companies had supply chain processes that were completely paper based. There was a need for a new solution that would serve as a communications tool for plants, customer service, carriers, and transportation departments. HP Hood’s goal was to work smarter with its customers and achieve the perfect order.

“We wanted to accomplish more with less putting the customer as our top priority,” said Heidi Henderson, Logistics Analyst for HP Hood. “We also wanted a complete solution to serve as a communications tool for our new plants, customer service, the carriers, and our transportation department.”

Solution
HP Hood implemented Sterling Transportation Management System (Sterling TMS) in 2002, which provided a logistics network of thousands of carriers, along with the capability to automate the entire transportation management process. Sterling TMS enabled the company to collaborate consistently with everyone in its logistics network, from order to delivery. HP Hood relied on Sterling TMS to be the transportation management system across all of the new acquisitions. Leveraging Sterling TMS data, HP Hood determined that adding a new plant/distribution center in Sacramento, CA, would reduce their days of travel; enabling them to become a national brand. Sterling TMS provides complete visibility into orders, inventory, and shipments throughout the delivery process; bridging the gap between transportation, the warehouse, and customer service.

“With the help of a software as a service (SaaS) system, Sterling TMS, we were able to cut back on 78% of paper- based processes; aligning with our corporate ‘going green’ initiative,” Henderson said.

Since Sterling TMS expands visibility beyond the transportation department to the warehouses and customer service, it truly provides a one-stop shop for information. Sterling TMS is used every step of the way: with transportation planners to consolidate loads, with customer service to maximize payload and customer communications, at the warehouse level for dock appointments, and for freight payment and analysis.

Henderson said, “Since we have every piece of information from order to delivery, we can figure out how to better serve our customers.” She continued, “Customers are driving the way we do business. In order to exceed their expectations, we have to go from cow to customer. We need to be able to see, manage, and measure by automating our entire transportation process using Sterling TMS.”

Key benefits

Visibility
• Improved customer service through increased order visibility
• Fewer customer service issues, improving customer’s trust

Operations
• Central management of all 150,000 annual shipments
• Increased order turn-around to 6 days or less

Analysis
• Respond to performance issues in real-time

Reduces costs
• Reduced LTL shipments by 20 percent

Improves customer service
• Improved on-time pickup and on-time delivery

Automates freight payment
• Saves time and enables regular carrier payment•
• Reduces payment errors
• Keeps expenses in the month they occur•

Components

IBM products and services that were used in this case study.

Software:
Sterling Transportation Management System

Legal Information

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