Case Study - U.S. Food Manufacturer

A Kenco CASE STUDY

This privately held, U.S.-based food manufacturer specializes in packaged and value-added products distributed nationwide. With production and distribution facilities located across several states in the Midwest, Northeast, and South, the company produces a wide range of items such as bacon, jerky, corn dogs, frozen appetizers, assembled sandwiches, and baked goods.

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TRANSPORTATION TRANSFORMATION

How a Leading Food Manufacturer Drove Down Costs and Gained Better Visibility with Kenco

The food manufacturer was approaching the end of their contract with an incumbent freight transportation provider and was experiencing:

The Need for Higher Shipment Visibility and Lower Costs

Over the partnership, Kenco implemented new solutions that modernized this manufacturer’s approach to transportation management.

Flipping the Script on Their Old Freight Solutions

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They soon began the hunt for a new partner that could offer them shipment insights, better pricing transparency, and a more cost-effective overall solution.

Limited Transparency and Flexibility

Lack of Shipment Visbility and Access to Tracking Systems

High Management Fees

They felt their former provider wasn't clear about pricing or how transporation costs were being managed.

Their previous provider did not offer a way to visualize and track shipments, causing them to fly blind at times.

The fixed fees amounted to over $100,000 each month.

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Implementing a Flexible, Dynamic Pricing Strategy

Auditing Freight Invoices

Continuous Improvement Through Strategic Sourcing and Scorecarding

Implementing a Flexible, Dynamic Pricing Strategy

Instead of simply passing through carrier charges, Kenco offered a consistent, market-indexed monthly fee, and proposed a lane-based segmentation pricing model. Transportation lanes were analyzed based on volume, frequency, and distance. High-volume lanes were placed under long-term contracts to stabilize pricing, while lower volume lanes went out to the market. This pricing model provided more stability, predictability, and transparency for budgeting, and was a refreshing change from the rigid pricing structure they had with their previous provider. With the new pricing strategy, the food manufacturer saw the following results:

12% savings in the first 9 months vs. historical costs

Cost per mile reduced from $3.63 to $3.20

Cost per pound reduced from $0.066 to $0.058

Accessing Real-time Shipment Visibility

As part of the food manufacturer’s transportation technology stack, Kenco implemented a transportation management system (TMS) that allowed for real-time visibility into their shipments. This was an important area that the manufacturer felt their previous provider had lacked. With the new TMS, the manufacturer was now able to see key details like order changes and appointment times, enabling them to manage their shipments more proactively.

Auditing Freight Invoices

Kenco also took responsibility for auditing and processing all freight invoices, identifying over $94,000 in savings since January 2024 and eliminating billing discrepancies.

Continuous Improvement Through Strategic Sourcing and Scorecarding

Rather than taking a “set it and forget it” approach, Kenco regularly re-evaluated the food manufacturer’s freight carrier network by running multiple bid events each year. Using historical shipping data, Kenco reassessed lane volume, shifts in demand, and carrier performance. Through its advanced sourcing platform, Kenco invited carriers to bid, fostering healthy competition while maintaining high service standards.

Accessing Real-time Shipment Visibility

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Welcome to the Transportation Control Tower

After selecting carriers, Kenco implemented a scorecarding system to ensure accountability and high performance. Non-performing carriers were removed or placed under review, and high-performing carriers were rewarded. This scorecarding process became a great tool between Kenco, the carrier, and the food manufacturer to communicate issues and fix them quickly.

Why Kenco

To solve their most pressing challenge of high management fees, Kenco came out of the gate with pricing at nearly half of the previous provider’s fees—over $50,000/month. On top of that, Kenco’s strict adherence to food safety and service standards gave this manufacturer peace of mind so they never felt they had to compromise and choose between affordability and safety. Kenco ensured all carriers had proper documentation, including food safety certifications and specific retail compliance. For these reasons among others, the manufacturer decided Kenco was the right partner.

What’s next

Today, Kenco and this food manufacturer are actively rolling out new initiatives to expand savings and operational efficiency, including an initiative for two of the customer’s warehouses to align sailing schedules. By optimizing scheduling on shipments, the manufacturer will reduce shipment frequency and cost while improving service reliability.

Kenco’s relationship with this food manufacturer has been collaborative and integrated from the beginning. With a dedicated Kenco team member staffed onsite—actively engaging in company culture and even participating in volunteer events—the partnership operates like an extension of their own team. The integrated dynamic has helped build trust and foster a strong sense of alignment as Kenco and the food manufacturer work toward the same goals in the future.

A Trusted, Embedded Partner

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