Leveraging IoT for Efficient Beverage Distribution Amidst Seasonal Surges
Technology Category
- Functional Applications - Transportation Management Systems (TMS)
- Infrastructure as a Service (IaaS) - Backup & Recovery
Applicable Industries
- Consumer Goods
- Transportation
Applicable Functions
- Logistics & Transportation
- Procurement
Use Cases
- Autonomous Transport Systems
- Public Transportation Management
Services
- System Integration
About The Customer
The customer in this case study is a global leader in the production and distribution of food and beverage products. They operate in 18 countries and their U.S. operations span more than 45 states. They fulfill nearly 20% of one of the world’s largest beverage producer’s U.S. bottler-delivered distribution volume. To ensure efficient delivery of beverages to the right facilities at the right time, the bottler uses the BluJay Transportation Management System (TMS), which is now part of connected supply chain platform e2open. The cloud-based TMS enables them to quickly and efficiently manage their freight operations, including freight procurement.
The Challenge
In 2021, a global bottler experienced a significant surge in consumer demand for beverages. However, they faced a major challenge in finding reliable capacity to keep up with the increased volume. Their transportation teams were left scrambling to secure capacity through the spot market, which proved to be more costly and unpredictable. The bottler, being among the top three bottlers for one of the world's largest beverage producers, had to ensure product availability, trucking capacity, and transportation budgets to fulfill the demand. The situation was further complicated as food and beverage producers across the U.S. struggled to find carriers able and willing to transport additional volume. Carriers they did secure often reneged on their contracts, leaving transportation teams scrambling to find often last-minute, unpredictable, and expensive capacity on the spot market.
The Solution
To address the challenge, the bottler activated the Convoy Dynamic Backup API in their transportation management system (TMS). This solution optimized shipping costs through real-time, competitive rates delivered directly to their routing guide and provided consistent, high-quality coverage with guaranteed tender acceptance. The Dynamic Backup API offered competitive, real-time rates that were inserted directly into their routing guide with no manual intervention needed. If a Dynamic Backup rate was shown for a shipment, transportation teams knew they could lock in that rate with guaranteed tender acceptance. As the U.S. full truckload market softened in early 2022, the bottler was among the first shippers to immediately save on their transportation costs. Dynamic Backup’s real-time rates automatically adjusted to market conditions to help them initially save on more than 150 lanes and continue to do so across additional lanes.
Operational Impact
Quantitative Benefit
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