In addition, AFS provided Musco with access to a range of additional carriers from across the country. As a result, Musco doubled its carrier mix. ENSURING STRONG RELATIONSHIPS The AFS team also guided Musco on the bene ts of building relationships with carriers. Strong relationships help ensure Musco can maintain its partners not just in good times, but also when
shipment tracking. This reduces the amount of time previously spent on tasks like manually coordinating and managing shipments. The managed transportation service from AFS also helps Musco adjust to market changes by providing information that helps to optimize the transportation mode for each shipment.
the business encounters challenges. “We stay loyal to our carriers as long as they’re within reason, while also introducing other carriers. Having that access has been huge,” Lin says. As they accumulate data on carriers’ service levels, the partners also engage in network analysis. For instance, Musco and AFS work together to assess if it makes sense to adjust forward stocking locations, given changes in demand or customer demographics. Musco previously lacked a coordinated process for tendering shipments. This occasionally led to double- or triple- brokering loads. And, some brokers would re-broker freight to asset-based carriers, prompting concerns about maintaining integrity in the chain of custody. AFS now coordinates Musco’s annual freight bids. AFS only considers asset- based providers for the carrier network, reducing the likelihood of shipments being brokered multiple times. To ensure Musco can leverage cost- effective shipment options, AFS receives outbound freight shipment notices via electronic transmission. AFS can then access competitive rates from a national pool of vetted carriers. Once a shipment is booked, the transaction automatically loads into Musco’s ERP system, streamlining the billing process and enabling
BRANCHING OUT WITH TRACK AND TRACE, VISIBILITY
Before working with AFS, Musco’s lack of an effective track-and-trace system limited its visibility to shipments. Now, by using the AFS transportation management system (TMS), Musco has access to visibility on shipment location, as well as costs and carrier operating performance. This data enables Musco to address issues as they arise, so it can continue to maintain quality service. This data also aids in reducing customer chargebacks, which Dyer says is a key capability for Musco. Retailers, and particularly grocers, can impose signi cant penalties when a supplier makes a mistake. Working with AFS, Musco is able to receive data from carriers on arrival and wait times that it previously could not access. With this data, Musco can challenge claims that, for instance, deliveries arrived after the scheduled delivery time.
CASE STUDY Growing the
Grove THE CHALLENGE
Introducing greater rigor and automation to Musco’s logistics and supply chain processes, with a goal of maintaining quality service and osetting rising transportation costs.
THE SOLUTION Musco partnered with AFS
Logistics, leveraging the 3PL’s managed transportation service and implementing both its freight bill audit and payment and order fulfillment solutions. AFS also introduced greater structure to carrier relationships and regularly assesses the company’s logistics network. THE RESULTS Among other benefits, Musco lowered its transportation expense by more than 10% in the first year of the partnership, while identifying opportunities to gain an additional $50,000 in cost reduction, also during the first year of the partnership. It doubled its carrier mix and restructured roles and responsibilities to improve the value contributed by employees. NEXT STEPS Evaluate dierent means of shipping to further cut costs and boost eciencies.
Musco Family Olive Co.’s processing plant in California is a near-zero-waste facility and the world’s first food-processing plant to achieve a Level 2 Safe Quality Food ethical sourcing certification.
210 Inbound Logistics • January 2024
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