JACKSONVILLE, Fla. -- Winn-Dixie, based here, has begun deploying a logistics management system that will enable the chain to optimize the use of its own trucking fleet or third-party carriers, rather than manufacturers, to transport products into its 12 distribution centers.
The system, from Manugistics Group, Rockville, Md., enables Winn-Dixie, which operates more than 1,000 stores, to collaborate with more than 20 third-party carriers. This will allow the chain to purchase more products on an F.O.B (Free on Board) basis from vendors, collect freight allowances and contract with third-party carriers, thereby reducing the overall cost of freight, according to a statement.
In the past, a large amount of the products Winn-Dixie purchased were delivered to its DCs by manufacturers, said Justin Strouther, director of inbound logistics. "We'd like to deploy as much of our own fleet or third-party carriers as possible," he added.
The system's automated engine "seeks out the lowest cost of transport," said Strouther. "It uses our fleet when possible, or a third-party carrier, selecting the lowest cost carrier."
He said the system, linked to a carrier's satellite tracking system, is also able to measure a carrier's performance, including on-time pick-up and in-transit arrival. "It gives us in-transit visibility," he said. Previously, Strouther said, Winn-Dixie relied on phone calls to track shipments.
Strouther said the challenge involved in implementing the system was gathering shipping data like pick-up locations and hours of operation from vendors. "To deploy this takes great teamwork," he said. "You have to go after the information in a systematic manner."
Commenting on the Manugistics implementation in the statement, Dick Judd, vice president of warehousing and distribution for Winn-Dixie, said the chain is "on track to hit our target numbers and will likely see full project payback in less than a year." The system has been in production in 12 DCs since April.
