Some of Americans’ favorite condiments include ketchup, salsa, barbecue sauce, and sriracha. Toppings like marinara and pizza sauce are popular as well. The common denominator here is the tomato, and food producers need many tons of them to make these and other tasty products.
One of those producers is Red Gold, an Elwood, Indiana, company whose brands include Red Gold, Redpack, Tuttorosso, Sacramento, Vine Ripe, and Huy Fong. The company works with more than 30 family-owned Midwestern farms to source sustainably managed crops.
In the 80 years since its founding, Red Gold has grown to become the largest privately held manufacturer of tomato products in the U.S., with 23 different product categories and nearly 400 combinations of flavors and cuts. Today, it serves both the grocery market and institutional customers like schools and hospitals.
But a food supply chain of this scale can be expensive to operate. So Red Gold recently launched an initiative to modernize its logistics processes with an eye toward boosting efficiency and increasing resilience while also cutting costs.
The timing was right for such a project. Freight rates in the trucking sector have been depressed for nearly two years, giving the company a rare opportunity to invest some of its savings into process improvements, the company said. “The current transportation market is extremely shipper-friendly and has been for the past 18 months,” James Posipanka, Red Gold’s supply chain manager–logistics, said in a press release. “Now is the time for us to plan and prepare for when it swings the other way and carriers can choose which customers they want to work with. When that happens, we want to be a ‘Shipper of Choice.’ By putting strategies and processes in place now, we’ll be successful when the market does flip.”
STEP-BY-STEP SAVINGS
For help streamlining its processes, the company turned to Loadsmart, a Chicago-based logistics technology developer that specializes in helping clients optimize freight spend, increase efficiency, and enhance service quality. Step by step, Red Gold began implementing three of Loadsmart’s technologies and digital services, moving to the next phase only after it had realized a return on its investment in the previous one.
First, Red Gold implemented Opendock, Loadsmart’s online dock-scheduling platform. That move alone saved thousands of hours of staff time by eliminating the need to make carrier pickup appointments via phone and email. Today, 100% of the carriers that do business at Red Gold’s facilities book their appointments through Opendock—which amounts to some 60,000 appointments annually. Among other benefits, the new platform has drastically reduced the amount of time it takes for a carrier to book an appointment—with Opendock, appointments are scheduled one to two days out instead of 10 or more.
Second, the company installed Loadsmart’s ShipperGuide TMS, a transportation management and request-for-proposal (RFP) management system. The platform helps Red Gold avoid spreadsheets and administrative work. For example, instead of individually emailing RFPs to a few carriers, the company can now send RFPs through the TMS to many more carriers than was feasible in the past and easily compare the rates carriers submit in response. In addition, Red Gold was able to automate some 70% of its load tenders, or about 25,000 shipments, which allowed the company to reduce headcount without any interruptions in workflow.
Third, Red Gold began working with Loadsmart’s digital freight brokerage team to convert some of its full truckload movements to partial truckloads. That move expanded both its carrier base and its freight mode options, saving it $200,000 annually.
All in all, since it began using Loadsmart’s technology and services, Red Gold has reduced appointment leadtimes by 90% and saved 17% on annual LTL freight costs, according to the two companies. Red Gold is so pleased with those results that its logistics team has already begun working with the technology vendor on additional opportunities for improvement.
Gartner, Inc.