Before the formal partnership, one of Kerry's major vendors went into administration, with Freight People responding to a call for help to urgently move stock from Scott’s Warehouse to their key customers. This was an enormous logistical exercise that required searching for a new overflow 3PL and getting access to refrigerated vehicles when the network was at capacity.
One of the key issues Kerry was looking to address was to reduce the reliance on a single carrier. Although moving to a multicarrier model, Kerry wanted to maintain a single carrier view for dispatching, tracking with a single source of data for BI reporting.
A major concern for Kerry was the demurrage charges invoiced by carriers, coupled with carriers complaining about excessive waiting times during pickups from Kerry.
Kerry currently uses dedicated couriers to shuttle between sites and do local metro deliveries. Visibility of these driver location and schedule is a challenge. Additionally, many of these smaller carriers don’t have good technology or any technology.
At various times, Kerry has a need for micromanagement of key consignments. This could be a new customers contract or a promotional activity.
After some recurring issues with damaged deliveries, Kerry wanted to use their own delivery documents for Proof of Delivery (POD) to track product batches, reference numbers, and pallet details for invoicing and accounting. This would allow them to get customers to sign off on the products delivered and reduce their exposure to damages. The challenge is that carriers prefer to use their own POD documents instead.
One of the challenges of managing multiple dispatch points is ensuring the different team members are using the lowest-cost freight option from the list of carriers presented for consignment. Kerry wanted to develop a governance framework and data capture process to understand how carrier decisions were made, the cost impact of those decisions and ways to improve.
Kerry found it difficult to ascertain where damages were occurring due to lack of communication from carriers. Investigating these complaints add significant cost to overall freight management.
Hazard Analysis and Critical Control Point (HACCP) is a set of procedures that food producers often implement to ensure that the food produced is safe and of high quality. Kerry took compliance with HACCP very seriously, and they wanted a better way to comply with audit requirements.
Access to operations data is critical for every business to identify issues, make changes, and measure the impacts. For a global company like Kerry, the need to also have that data standardised into reporting that roles up to a global level is an additional degree of difficulty. Especially when it comes to freight operations with multiple carriers, systems and data sources.
Carrier performance in different geographical areas tends to ebb and flow throughout the year. Sometimes this variability has a measurable negative impact on the quality and efficiency of the delivery experience so the ability to change carriers quickly, without impacting operations, can provide a significant competitive advantage.