Improving Transportation Effectiveness: Breakthrough Thinking in Carrier Asset Management at the Hershey Company

Thursday, June 26, 2008 - 10:30 am - 11:30 am

Track: Transportation Issues

Session Abstract

Today’s business environment requires a strong focus on effectively managing transportation costs.  With fuel charges significantly increasing, and the price of commodities drastically impacting the bottom line of food manufacturers, containing Logistics costs has been a strategic imperative at The Hershey Company.

Strong initiatives over the past few years have been very successful in keeping costs in line but breakthrough thinking and major process change were required to achieve significant transportation savings.  An innovative logistics continuous improvement program entailing multiple initiatives over a three-year period of time was begun in 2007 to provide these significant savings.

A key part of the continuous improvement program is Project Overdrive, focusing on upgrading the existing transportation planning software, integrating inbound transportation, implementing a supplier visibility tool and partnering with carriers to effectively put continuous move load tendering into operation.  This initiative is driven by a cross-functional team representing Packaging, Commodities, Information Services, Finance, Manufacturing and Transportation.  

This session will outline the approach The Hershey Company is taking towards this project.  It will discuss key inputs, outputs and change management concerns for this process-changing initiative along with lessons learned and best demonstrated practices.

Learning Objectives:

•          Case Study on key inputs, outputs and change management concerns on a company-wide process changing initiative to:

o        Upgrade the Transportation Planning System

o        Integrate Inbound Transportation Planning

o        Implement a Supplier Load Visibility Tool

o        Put Continuous Move Load Tendering into operation

Learning Outcomes:

•          Understand the approach The Hershey Company is taking towards generating significant transportation savings.

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