We recently sat down with Happy Egg Logistics Manager, Jimmy Huff, to discuss their partnership with Dynamic Logistix (DLX) and how they’ve transformed their food supply chain. Let’s dive in.
Q: Prior to partnering with DLX and implementing a transportation management system (TMS), what shipping challenges were you encountering?
A: Our day-to-day operations were spent manually inputting order data, tracking down carriers for pickup and delivery information, and spending countless hours reacting to last-minute problems.
Every day, we were reaching out to carriers via email or phone calls asking for status updates on their ETA for pickup. We were doing the same thing for our loads in transit. Although, we had access to some carrier tracking portals, it was still a manual process. If we expected a missed pickup or delivery, we had to quickly jump on the problem to mitigate the issue.
Managing shipments ate up a significant amount of our time. Our order and load building processes were painfully inefficient. Each order was entered manually into a spreadsheet, requiring us to double and triple-checking information to avoid mistakes. This took up over 80% of our time each day. We often found ourselves working late into the evening on Fridays until the last load was delivered. We felt like we didn’t have another option.
We also managed all our claims, typically handling three or four active claims at a time. This often involved chasing down bills of lading, invoices from carriers, and other shipping documents, ending in tediously managing the claim through resolution and carrier payment. On average, each claim took 60-90 days or longer, leading to questions from our upper management team.
It seemed that as soon as one fire was put out, another ignited somewhere else.
Q: How and when did you know you were ready to invest in a transportation management system (TMS)?
A: The first sign was employee burnout. Chris, our Supply Chain Customer Service & Logistics Manager, and I struggled to take time off because there was too much work for one person to handle alone. Our whole team was exhausted. We found ourselves pleading with Blake Klosterman, our Director of Supply Chain, to find a scalable solution. We knew growth wasn’t possible with our old ways of handling shipping.
The second sign was our load planning strategy. Ninety percent of our loads were multidrop, and at the time, it made the most sense for us to have upwards of 10 drop loads off one truckload shipment. We knew this wasn’t a solution. It translated to higher fuel costs and hurt our carrier relationships because we knew our freight was undesirable for their network.
The third sign was our struggle with our on-time delivery (OTD) metrics. Our delivery performance score averaged around 82%, and in the premium product arena, that simply wasn’t good enough. Missing the first delivery in a multi-stop route had a huge ripple effect, which meant costly fines but, more importantly, out-of-stocks that left grocery store shelves empty.
Q: What stood out to you specifically about Dynamic Logistix that made you believe they were the right logistics partner?
A: Before meeting with Dynamic Logistix, we evaluated three other options that all fell short. Two of them were transportation management systems (TMS) that lacked the necessary account support. While the software was impressive, it would require us to set up servers at our office, which would be too complex and take too long.
The timing for discovering Dynamic Logistix was perfect. Greg, DLX’s Business Development Manager, sent us an email that caught our attention for two reasons. One, he offered us an impressive TMS solution, backed by a team of real people, and two, the email actually came from him. Not a bot.
Initially, we thought we only needed a TMS. However, DLX’s solution, with exceptional account management, claims, and freight audit and pay support, blew us away. The tipping point was their attention to detail during the data analysis process. DLX knew the right questions to ask and turned answers into tangible solutions. We’re also not the only team they’ve helped. They’ve reduced stress for our accounting team by having one channel for all of our transportation-related invoices.
Q: Once XTMS was up and live, what improvements did you notice?
A: Eliminating manual data entry gave us more time to strategically adjust loads, run parameters, and explore more efficient shipping options, like consolidating loads or rerouting. With more time for analysis, we were able to look at the big picture data that benefits Happy Egg clients. We can now dive deeper into customer orders, resolve issues more quickly, and spend more time on meaningful work that’s proactive rather than reactive.
Our cost savings were also significant. With DLX, we made small adjustments that had a big impact. By consolidating loads, we eliminated three loads per week, saving an average of $8,000 weekly. Optimized load routes reduced total miles traveled, which, over the course of a year, meant substantial savings.
Our problem-solving became easier. Now, when I notice an opportunity to add a pallet to an order, I can proactively work with our customer to add that extra pallet, making the freight more efficient and boosting our sales. This level of visibility also helps prevent out-of-stock issues and ensure better stock levels for promotions.
Every week, there’s more growth and fewer questions about our shipping operations. Thanks to DLX, our operations run smoothly (even if someone’s out). Their ongoing analysis process also helps us have more productive conversations that drive better solutions and strategies for our team.
After partnering with DLX, we’ve improved our on-time delivery (OTD) scores to retailers by an average of 12%, raising our average OTD score to 94%. Dynamic Logistix played a huge part in that win. They’ve dedicated the time and energy to really get to know our business and people. They genuinely feel like a part of Happy Egg’s team.
Dynamic Logistix is proud to be known as the Food Shipping Experts. They offer end-to-end logistics solutions for partners like Happy Egg, helping food shippers with real-time tracking, automated freight updates, lane consolidation, load optimization and other logistics support. If you’re ready to transform your shipping strategy, book a demo with the experts. Or learn more at dynamiclogistix.com/food.
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