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A food manufacturer couldn’t make their scheduled deliveries, so they turned to RXO.

The emergence of home food delivery is nothing new but exploded in 2020 during the global pandemic as people sought easy options for their grocery shopping and meals. The industry has become a whopping $220B market over the last 5 years. Many companies in the food and beverage space from restaurants, grocery stores and food manufacturers have been quick to adapt to the new on-demand delivery trend, but it comes with significant challenges.

A leading pet food manufacturer focused on providing fresh, high-quality, natural meals for household pets began seeing rapid growth during the pandemic, delivering fresh pet food to the nation’s biggest retailers as well as directly to customers.

But with growth came the challenges; the company’s long-time carrier had an abysmal 55% on-time delivery rate with crucial big box retailers like Costco and Target, and the company was missing out on savings from their contracted lane rates due to lack of transparency into their shipments. They also had to deal with the challenges of charge backs from their retail customers and the dangers of low customer satisfaction in the highly competitive retail environment. And they were struggling to meet growing demand for direct-to-customer deliveries, particularly in the booming New York City market.

After doing a deep root cause analysis with the logistics team, RXO was able to identify some key areas that were contributing to the problems​, including:

  • Lack of training for carriers wasn’t providing status updates to allow visibility into on-time delivery
  • Errors in charge backs for individual shipments that had been actually consolidated
  • No standard operating procedures ensuring reliable home delivery service

RXO developed a lean strategy to focus on addressing these key points with an omni-channel approach to increase on-time delivery, reduce cost and meet customer service level requirements.

88%

On-time Delivery Rate

Cost Savings

In consolidated contracted lane rates

SLA Compliance

Through high-touch manual process to meet strict customer requirements

The surging demand in markets for home delivery leveraged RXO’s market-leading Last Mile service, helping the company grow their OTD rate from 55% to 88% in two months. By focused on carrier training, the visibility into delivery status and timeframes were increased significantly. RXO as also able to determine the company was being charged for individual shipments that had been previously consolidated through transparent consolidation was able to help take advantage of contracted land rate savings.

Meeting retailer strict service level requirements required a multi-prong, high-touch process that allowed the company to ensure on-going carrier training was compliant with the individual customer needs. By working closely with the Customer Service teams, standard operating procedures were put into place for every type of request to ensure customer satisfaction. This led to higher levels of customer service, allowing for continued growth and expansion into new markets for the company.

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