CytoSport, Inc uses the MercuryGate TMS to find millions in savings…fast
We're already in the seven figures as far as savings goes…and from a reporting standpoint, we now really understand what our freight spend is, and we can share that reporting with our executive team."
— Mike O'Hare, Director of Logistics and Warehousing, CytoSport, Inc.
CytoSport, a fast-growing maker of nutritional drinks, began exploring ways to reduce transportation costs in mid-2009. A year later they had implemented the MercuryGate TMS and saved over 20% in freight costs. And the savings don't stop there. The next phase of the implementation will involve consolidating outbound shipments to customers. According to Mike O'Hare, "Optimization is probably going to be the single greatest cost reduction that the TMS will provide us. It's going to allow us to take LTL shipments and consolidate them into truckloads."
Rolled out in January of 2010, the TMS is being used to handle all freight shipments to customers. “Loads are tendered from the TMS to the respective carriers”, explains Mike. His department uses the software for rate shopping and one-stop shipment tracking through the system's integration with the carriers' own tracking systems.
In the first phase of the implementation, CytoSport integrated several carriers using EDI to facilitate more efficient communications. They also integrated the TMS with two existing ERP applications. At the same time, CytoSport modified their distribution from 3 distribution centers to two – one on the west coast and one in the northeast.