Dannon Leverages LeanLogistics to Create Competitive Advantage

The Dannon Company, Inc. grew rapidly after introducing fruit-on-the-bottom yogurt cups in 1947. And now, as one of the top manufacturers and distributors of yogurt in the United States, and the top-selling brand of yogurt worldwide, Dannon (sold under the Danone trademark in most countries other than the USA) produces and sells more than six million cups of yogurt a day in almost 100 flavors, styles and sizes. Headquartered in White Plains, New York, Dannon has plants in Minster, Ohio, Fort Worth, Texas and West Jordan, Utah. The Minister, Ohio plant is the largest yogurt manufacturing plant in the USA.

The dairy industry is an extremely competitive market with yogurt holding the title as one of the fastest growing segments. Yogurt consumption has almost doubled every seven years, making it a very attractive marketplace. Dannon competes with other fresh dairy providers to get products on shelves as quickly and efficiently as possible. In order to stay on top of the competition, Dannon is required to track hundreds of loads a day through its three manufacturing plants, six distribution centers and numerous trucks from third-party carriers.

In addition to the everyday complexity inherent in Dannon’s supply chain process, customers are requesting better service through improved scheduling options and increased on-time deliveries. The former outbound and inbound appointment scheduling process was manual and required time-consuming phone calls, faxes and emails between departments, shipping facilities and carriers. Additionally, the dock scheduler at each location was the only party with visibility to the entire transportation schedule creating a bottleneck that limited the ability to communicate any delivery changes to the customers.

Dannon selected LeanLogistics’ LeanTMS™ to get ahead of the competition by addressing the increasing demands from customers and complexity of the company’s fast-growing, changing marketplace. LeanTMS is a true SaaS transportation management system that supports planning, execution, claims and appointment scheduling. LeanTMS also integrates with Dannon’s SAP system to ensure end-to-end control over inventory, improve overall enterprise resource planning (ERP) and provide complete visibility.

“We work in a fast-growing marketplace that has unique demands on the supply chain due to the shelf life of the product and ourdistributed operation. With LeanTMS™ we are able to manage transportation from shipment tender through delivery, making service a competitive advantage.” National Transportation Manager, Dannon

Dannon improved order accuracy, appointment scheduling, workforce performance, visibility and communication using LeanTMS to more efficiently manage transportation operations:

- Staff for special events and busy times well in advance with calendar-based LeanAppoint allowing users to schedule in open slots on-line versus calling Dannon to make appointments

- Monitor both arrival and departure appointments in real-time, available to all customer service representatives, to communicate accurate delivery times

- Track priority deliveries to customer or distribution center and provide details on any delays with availability of real-time data to all load planners and transportation staff

- Research areas with frequent issues, pinpoint causes and address problems through reporting of service failures

- Review accessorial charges and automatic calculation of fuel surcharges for total shipment cost any time upon load acceptance with visibility to all carrier dialogues

Dannon has the opportunity to create a competitive advantage in this fast-growing, highly-competitive marketplace. Visibility and collaboration provided by LeanTMS, enables Dannon to increase customer satisfaction while freeing up internal resources to focus on other corporate initiatives. The benefits Dannon continues to receive from utilizing LeanLogistics technology include:

Saved Time – Dannon frees up approximately one and one-half hours per resource per day with LeanAppoint allowing resources to handle more important tasks on a daily basis
Improved Customer Service & Customer Satisfaction – Complete visibility into the transportation process allows all customer service representatives the ability to see loads quickly and easily which provides open communication of any issues or delivery changes leading to customer satisfaction improvements
Reduced Costs – Dannon and associated transportation parties see carriers’ schedules allowing for better planning for delays and changes resulting in reduced detention costs in the first year of usage alone

Download the full Dannon Case Study here >>

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