Rockville, MD July 19, 2002 Retail food chain Winn-Dixie Stores is using a logistics solution from supply chain software provider Manugistics Group to cut its operating costs and improve distribution performance.
With more than 1,000 stores in 12 states and the Bahamas, Winn-Dixie is faced with the complex demands of operating a multi-tiered distribution network involving multiple commodities and several transportation modes. Since late 2001, the company has made controlling its cost of freight on inbound products from vendors a priority. Following a comprehensive evaluation, Winn-Dixie selected Manugistics solutions to address its requirements.
Less than four months after they began implementation, Winn-Dixie was utilizing Manugistics' solutions to help optimize its inbound transportation and collaborate electronically with more than 20 of its carriers, achieving greater visibility into its inbound and outbound freight movements.
Winn-Dixie will now purchase more products on an F.O.B. (free on board) supplier basis, collect the freight allowance from the vendor for those loads and contract for the movement of those loads with their own selected carriers. By streamlining its procurement process in this way, Winn-Dixie expects to reduce the cost of freight embedded in the purchase cost of goods.
"We found Manugistics to have an excellent implementation track record, innovative solutions and the vision needed to make logistics a core competency at Winn-Dixie," said Dick Judd, vice president of warehousing and distribution at Winn-Dixie Stores. "I am very pleased with the results we're seeing in the first phase of our project; we are on track to hit our target numbers and will likely see full project pay-back in less than a year."
The Manugistics global logistics management solution at Winn-Dixie includes multi-modal, multi-leg transportation planning, shipment execution, event management, freight payment, and performance monitoring and analysis.