Too Much Pork for Just One Fork

Smithfield Foods uses TradeMatrix to optimize getting piggies to market

Dallas  June 21, 2001  Value chain and marketplace solutions provider i2 Technologies today announced that Smithfield Packing, the largest division of Smithfield Foods Inc. and the largest hog producer and pork processor in the world, has selected and implemented i2 TradeMatrix Transportation Optimizer.

Smithfield Packing had been using a manual process to manage its 2,000 loads per week, but the company decided it needed an electronic solution that would electronically create a shipment plan based on changing load schedules. The company also required a solution capable of scaling with the seasonal demand pressure experienced in its business. In order to find the most appropriate solution, Smithfield Packing evaluated technology suites from i2, Manugistics and others. According to Gary Conrad, vice president of Logistics at Smithfield Packing, the company chose i2 because of i2's in-depth analysis of Smithfield Packing's needs, its solution functionality, commitment to the Consumer Packaged Goods industry and market-leading research and development.

"i2 spent three days at our company's headquarters and interviewed key executives and line personnel to determine our current state and future plans. Throughout this diligent process, it showed that i2 was interested in our company's needs and making sure that their solutions matched our requirements and vision," said Conrad.

i2 TradeMatrix Transportation Optimizer is designed to consolidate shipments, design routes and assign carriers and services to accommodate all delivery times and service restrictions. For Smithfield Packing, the solution is intended to decrease its trucks' route time using various types of data, including shipment, location and rating information to consolidate shipments into efficient, cost effective loads. As a result of implementing Transportation Optimizer, Smithfield Packing reports it has reduced processing time 95 percent and optimized loads against carrier availability and container dimensions, ensuring that plans are compatible with available truck space.

"Not only is this solution exactly what we needed to run our processes more efficiently, we are also able to see value very quickly. We began implementing Transportation Optimizer in mid-March and are now live with the solution. We'll be able to see our investment pay back within two months," said Conrad.

"Smithfield Packing is a great example of the impact our solutions can have on a company," said Reagan Lancaster, i2 president, Worldwide Operations. "In just a short time they have gone live with our solution and are already seeing value in the improved process."