Oracle Transportation Management

Land O’Lakes uses Oracle’s Demantra software to anticipate market demand and increase margins.

Shipping dairy goods to the right place at the right time can be a tricky process. Once trucks are loaded with butter and cheese, it’s imperative that they reach their destination promptly and without obstacles. To help optimize shipping and fulfillment processes, Land O’Lakes IT has implemented Oracle Transportation Management. Oracle Transportation Management provides comprehensive transportation planning and execution capabilities for shippers and third-party logistics providers. It integrates and streamlines transportation planning, execution, freight payment, and business process automation on a single application across all modes of transportation. 

Integrated with Oracle’s JD Edwards EnterpriseOne enterprise resource planning system, Oracle Transportation Management works with Oracle’s Demantra software to provide Land O’Lakes with efficient plans regarding shipping and delivery of its goods. With the Demantra system, Land O’Lakes can determine which distribution centers need shipments based on customer demand. With Oracle Transportation Management, Land O’Lakes can chart out the most cost-efficient shipping routes for trucks once they leave the plant.

“We’re getting huge benefits from Oracle Transportation Management,” says Barry Libenson, vice president and chief information officer at Land O’Lakes. “Oracle’s Demantra solution looks at the geography of the country and understands where shipments have to go. Oracle Transportation Management allows us to optimize truck weight, and determine how to best route each vehicle.”

Oracle Transportation Management features real-time integration with the JD Edwards EnterpriseOne system, so trucks can be more fully utilized and shipping runs are smoother. Land O’Lakes was able to pack trucks with bigger loads, which cut transportation costs by several percentage points and led to smoother-running warehouses. The number of truck trips between distribution centers also declined, leading to cost savings. Mark Thome, vice president of information technology at Land O’Lakes, says many of the improvements are tied to the decrease in inventory levels enabled by the Demantra solution.

“Truck weight improved 4 percent to an average of 40,000 pounds,” says Thome. “The less material you have to move around, the less you have to put into trucks and warehouses.”

Monica Mehta is a frequent contributor to Profit.