A strategic relationship saved potato growers nearly a half million dollars during peak season
Western Growers is one of the nation’s largest agricultural trade associations. Its 3,000 members grow, pack, and ship 90 percent of the fresh vegetables and 70 percent of the fresh fruit and nuts grown in Arizona and California. Fresh produce shippers, like Gills Onions, a Western Growers member, depend on creative, flexible transportation solutions for shipping capacity and overall consolidation savings.
When an entire industry changes key practices, core supply chain vendors scramble to find new solutions. Such was the case in 2005, when consolidation of retail and foodservice companies escalated and the process for transporting fresh produce began to change. Rather than purchasing under customary FOB terms, many of the consolidated companies requested delivered pricing, which required shippers to provide transportation services. With this shift of transportation responsibility, shippers became more involved in transportation and logistics. In addition to delivered pricing requirements, retailers began requesting year-round availability of many produce categories, as well as local and regional sourcing to reduce food transport miles and increase product vitality.
Many shippers found it difficult to function in this environment. The transportation volumes of small and medium sized shippers limited their ability to negotiate for competitively priced refrigerated service on a consistent basis. Shippers with less than truckload (LTL) volumes were at an even greater disadvantage. These problems increased during holidays and other peak shipping periods, when even large shippers experienced difficulty finding transportation capacity.
Shippers responded to regional sourcing requests and year round supply requirements by moving production from traditional growing locations and developing offshore supply sources; but often lacked the resources to move product to market from these areas. Concerned with how these issues were impacting its members, Western Growers aligned with C.H. Robinson in early 2006 to develop a unique transportation program for its member shippers and participating licensed produce trade associations.
At the core of the transportation program is C.H. Robinson’s ability to consolidate freight to gain competitive advantages in capacity, service, and rate levels. Other key elements of the program include customized pricing, extensive LTL capability, high volume surge capacity, and strategic account management. For example, C.H. Robinson can negotiate strategic contracts to move significant volumes of fresh produce and demonstrate deep cost savings.
C.H. Robinson’s powerful technology platform, Navisphere®, gives shippers the end to end shipment visibility they need, plus reporting through EDI communications about shipments in transit, and executive scorecards to analyze on-time deliveries and performance exceptions. Some shippers also gain advantages through outsourcing. They can focus on their core business while preserving operational flexibility by using C.H. Robinson’s inventory management systems or outsourcing their transportation procurement and operations. Overall, shippers get a comprehensive menu of flexible, scalable services into a customized program built around their key business operational and financial metrics.
Ultimately, using Western Growers’ transportation program enables members to differentiate themselves from their competitors because they can make significant service and pricing commitments to their customers. These commitments include:
In addition to the many benefits that its members receive, the transportation program has positively impacted Western Growers. By encouraging non-members to try the program, Western Growers saw an increase in membership and more connectivity to grower-shippers.
To provide consistent and reliable equipment to the members, meet customer delivered pricing requirements, improve service levels, and drive efficiencies throughout the supply chain.
C.H. Robinson and Western Growers aggregate shippers’ freight volumes to attract a robust carrier base with customized performance metrics. The program allowed Gills Onions to satisfy customer delivery requirements, helped them attract new customers, and gave them more time to focus on growing and processing onions.
Participating members move fresh produce more efficiently, provide consistent service and response to customer requirements, sell more product to their customer bases, and gain a more efficient and economical supply chain.
1 Savings can’t be guaranteed for every program and vary by lane based on prevailing market factors.
To learn more about C.H. Robinson’s programs, call 800-323-7587 or email solutions@chrobinson.com.
“If we have transportation issues we always call C.H. Robinson first because they take the headaches out of the system, always come through, and are the solution to us getting product delivered.”