Food manufacturer streamlines supply chain with cross-border intermodal diversification

To meet capacity demands during the pandemic, a leading snack food manufacturer started turning more frequently to brokerage services and engaging with multiple smaller carriers to help service its intermodal transportation to and from a facility in Mexico. The influx of carriers into its network complicated its supply chain and required a significant amount of time managing the daily logistics.

Seeing the inefficiency and working through the complications of managing so many carriers, the manufacturer wanted to get back to basics and simplify its supply chain. This included shifting away from brokerage and back to working primarily with asset-based providers that:

The manufacturer had looked to Schneider for help in the past with moving loads northbound by both Van Truckload and Intermodal. As the manufacturer started to assess its ongoing capacity needs in Mexico, coupled with its desire to simplify the supply chain, it collaborated with Schneider to find efficiencies.

As a producer responsible for nearly 70% of sales in the United States, missed deliveries at this facility could cost the manufacturer millions of dollars per day—a chance it wasn’t willing to take.

Schneider explained the benefits of a diversified intermodal solution, illustrating how moving freight to another railroad mitigated risk in case of unexpected delays or closures. Loads going to or through Chicago would travel on the CPKC’s Mexico Midwest Express, while loads heading to the Southeast would use CPKC and CSX’s Southeast connection—a line unique to Schneider. The CPKC line is the most direct route from Mexico to Chicago, and Schneider not only has priority placement on the rail, but there are also zero handoffs between Mexico and the Midwest, making it a fast, secure option.

With its longstanding presence in Mexico, Schneider knew the processes and requirements for smooth border crossings both into and out of the country. This cross-border shipping expertise would expedite crossings and further help ensure a smoother supply chain. Most importantly to the manufacturer, Schneider provided a contingency plan in case of delays on the CPKC: The loads could move via truckload at a comparable financial rate and similar speed of delivery as they would on the rails.

The manufacturer saw the value in diversification across both the underlying rail provider as well as the border-crossing location. It appreciated Schneider’s approach and solution for contingency planning and was impressed by the provider’s ability to ramp up ahead of schedule.

While the manufacturer was looking forward to this strategic intermodal plan, it imparted to Schneider how imperative it was to maintain, if not exceed, the current capacity and level of service it was used to having. In an effort to provide a strong contingency plan should intermodal loads be delayed, Schneider took on some of the manufacturer’s truckload business to ensure the facility always had Schneider-owned equipment available to provide flexible, in-country capacity at a moment’s notice.

Since it began moving intermodal freight for the manufacturer out Mexico, Schneider has indeed continued to meet its high service expectations. This is in large part due to the transportation provider’s smart, tenured team of experts in Mexico. They assess the supply chain from multiple angles daily, proactively communicating the smallest of changes or updates and ultimately stopping problems before they start.

Additionally, there is daily management and oversight of the customs piece to ensure seamless border crossing and ongoing coordination of local drivers who are equally as knowledgeable of the manufacturer’s business for the first and final mile delivery efforts.

The Schneider Mexico team also conducts preventive and corrective maintenance to any container that is going into the facility to ensure the integrity and quality of the container meets the strict standards required to move baked goods. The transportation provider uses a maintenance area on-site at the terminal, ensuring that the containers are in the appropriate condition before they are in-gated at the facility.

The simplified transportation process and ongoing collaboration are hallmarks of the relationship between Schneider and the manufacturer. With its rigor around service levels and available on-site capacity, Schneider was quickly awarded additional volume beyond bid awarded levels. Additionally, the manufacturer is impressed with Schneider’s deep knowledge of its operation from end to end and how it routinely goes a step beyond to ensure service, capacity and contingencies are always top of mind and accounted for.

Learn how a collaborative approach to cross border transportation can uncover efficiencies and streamline your supply chain.