Lipari Foods

Lipari Foods, Inc., manages a far-reaching distribution business, including bakery, deli, packaging, retail and foodservice operations. Headquartered in Warren, Mich., Lipari distributes such name brands as Campbell’s, Tyson’s, Stouffer’s, Pillsbury and Land O’Lakes. It operates a fleet of more than 140 vehicles from Southern Wisconsin, Illinois, and Michigan to Western Pennsylvania and parts of Tennessee and West Virginia.

Business Challenge

As its business grew, Lipari Foods’ private fleet and driver pool—and associated costs—seemed to grow even more. Controlling expenses while giving transportation managers greater visibility into their daily operations proved a key challenge, says Lipari’s Director of Transportation, Colin Andrukates. What’s more, management needed to have a fuller picture of transportation operations to properly supervise and coach staff and drivers.

Even something as simple as pre-trip and post-trip times were not being utilized effectively Andrukates recognized. At the very least, managers needed a more efficient way to monitor driver clock-in and clock-out times on a regular basis. Payroll included large amounts of overtime, and calculating it accurately was itself a great expense, a sure sign to Andrukates that his operations could be better managed.  If Lipari was to improve efficiencies, it needed a new investment in information technology to get a better return on the software and equipment it already had in place.  Among the goals:

• Make the large amount of data churned out by on-board computers (OBCs) and routing systems a valuable asset for planning and budgeting.

• Assign tractors and drivers to routes more effectively,  balancing driver hours and available equipment against daily demand.

• Better monitor and manage the major capital expenses of drivers and equipment, even when they are out on the road.

• Reduce overages, shortages and damaged cases (OS&D) both as an expense and a customer service issue.

Solution

“Syntelic has exceeded my expectations. Once the data is in front of you … you can monitor your operations on a more in-depth level.”

Lipari saw how Syntelic’s Transportation solution could serve as a centralized dashboard for streamlining several critical processes, including equipment utilization and driver payroll. Despite some initial skepticism that implementing a new software system would not further bog down the information flow, Lipari moved forward with the project. Notes Andrukates, “Installation took just three days, and Syntelic’s training was excellent.”

Results

By using Syntelic on a daily basis, Lipari was able to capitalize on hidden savings in its operations. In just the first year of implementation, Lipari’s management team was able to save more than $1 million transportation costs (See sidebar for details). 

Gathering and evaluating data from XATANET® OBCs and a Roadnet® routing system had been a time consuming and inefficient process prior to having Syntelic DT in place. Now Lipari managers can quickly and easily compare planned routes against actual routes. They can continually optimize day-to-day operations against the plan. Better equipment utilization and improved route planning shaved 16,000 miles from routes per period, estimates Andrukates.  “With DT the proof is in the pudding,” he says. He particularly values the ability to drill down into customizable categories and, within minutes, uncover inaccuracies and exceptions to Lipari’s business model.

With Syntelic providing new business intelligence, Lipari dramatically changed its driver payroll structure, enabling the company to efficiently and effectively switch to incentive-based pay. The change offered a potentially higher pay rate for the drivers, one based on the work performed such as number of miles driven and number of cases delivered. Driver performance improved as drivers went after the new incentives. In addition, the shuttle route payroll process now takes only six hours. 

Says Andrukates, “Syntelic has exceeded my expectations. Once the data is in front of you ... you can monitor your operations on a more in-depth level.”

Syntelic has become a regular part of Lipari’s everyday management process. Adds Andrukates, “Lipari’s fast paced work environment makes it challenging to implement new software, especially when it has to link to the data streams from other systems. The advantage with Syntelic DT is that it is designed to interface with other software. It is the solution we can’t do without.” He points out that the swift reductions achieved with Syntelic would not have been possible without the work of Lipari’s supervisory team. “They were willing to view our business in a whole new way and eager to accept new data as a means to desired change.” 

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