1. STERLING COMMERCE CASE STUDY
Implementing a transportation
management system to
consolidate the shipping process
Seneca Foods Corporation
Location Customer background an alliance with General Mills Operations,
Marion, NY
Seneca Foods Corporation is an Inc., Seneca produces canned and frozen
Industry
independent, publicly traded food vegetables, which are sold by General
CPG/Grocery
Revenues processing company. As a fully integrated Mills under the Green Giant® label.
For the fiscal year ended March 31, 2006, net producer, the company has made
sales were $883,823,000 and net earnings were significant investments in facilities and Business challenge
$21,993,000.
technologies to enhance manufacturing Prior to Sterling Transportation
Business challenge
processes, increase line speeds and Management System (Sterling TMS),
To implement a transportation management system
that would enable the company to centrally manage guarantee premium quality. Seneca even Seneca Foods managed freight
contracts with carriers and execute logistics in a develops crop seeds and manufactures contracts through a centralized route
distributed manner guide; however, regional transportation
their own cans to give them an additional
Solution
competitive advantage. Remaining on managers selected the carriers. That
IBM® Sterling Transportation Management System
the leading edge of agribusiness by meant contracts were negotiated on a
Benefits
• Connected disparate systems, locations implementing advanced technologies and regional basis instead of a corporate-wide
and carriers
information systems, Seneca Foods is able contract rate.
• Centralized control of operations through
enhanced visibility of shipment activity
to produce an exceptional range of quality
In addition, shipments were tendered via
• Improved control of routing guide compliance products more efficiently and with fewer
• Increased contract compliance regarding invoices phone and fax with no cross-company
imperfections.
and freight payment visibility to shipment status. Performance
• Reduced manpower and paperwork measurement was handled by carriers,
Products are sold under the Libby’s , Aunt
®
• Decreased freight costs by 2% within first year
Nellie’s Farm Kitchen , Stokely’s , READ
® ® ® who did not always report on a
and Seneca labels, as well as through the
® monthly basis.
private label and industrial markets. Under

2. Seneca Foods needed a new dock scheduling for Seneca. Again,
transportation management system Seneca expects to see a savings in overall
that would provide rate management, costs, manpower and paperwork.
tendering, visibility and supply chain
“The speed and ease by which Sterling management, thus enabling them to Key benefits
TMS helps us move orders to the carrier reduce off-contract purchasing, improve Centralized management and distributed
base have definitely reduced our freight carrier utilization and centrally manage execution: Now all interplant and
cost. The entire process is streamlined, logistics. outbound shipments to customers and
which has led to a reduction in shipping warehouses are centrally managed, with
costs, manpower and paperwork.” Solution full visibility to shipment activity. This
Gene Schaetten Seneca Foods chose Sterling TMS allows the company to maintain and
Vice President of Transportation,
Seneca Foods Corporation
because its Web-based technology offers control routing guide compliance.
robust transportation management system
capabilities, such as online tendering, Reduced costs and improved operations:
shipment tracking and tracing and supply Seneca improved control over logistics
chain event management. It also provides operations through online track and trace
cross-company shipment visibility, as well capabilities, automated tendering and
as consistent performance measurement. enhanced carrier performance analysis.
Within three months of implementation,
Now Sterling TMS helps Seneca manage the company was on track to reduce
more than 55,000 orders per year. With overall transportation spending by using
both interplant and outbound shipments carriers more efficiently and minimizing
to 12 warehouses and roughly 1,000 off-contract purchasing.
customers, Seneca relies on Sterling TMS
network to centrally manage contracts Faster deployment, easy enrollment:
with carriers and execute logistics in a With the decentralized nature of Seneca’s
distributed manner. business, users were located throughout
the United States. However, Sterling
Sterling TMS has streamlined Seneca’s TMS provided a phased rollout so every
shipping process. In fact, now three location and user was fully trained quickly.
people manage transportation logistics. This approach significantly increased user
Prior to Sterling TMS, 15 people were adoption and allowed for contingencies to
involved. And by the end of 2006, Sterling be easily addressed during the rollout.
TMS will facilitate freight payment and
About Sterling Commerce
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in their dynamic business network through innovative solutions for selling and fulfillment and for
seamless and secure integration with customers, partners and suppliers. More information can be
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