Challenge:
Reid Stockfeeds, a family-owned business that has been supplying mixed feed to Victoria’s dairy, poultry, and pig farms for 25 years, faced high freight costs that were impacting profitability. With an annual turnover of $44 million and plans to expand further, the company needed to improve delivery efficiencies and reduce costs. A supply chain benchmarking exercise revealed that while they met world best practices in many areas, their freight costs were too high. To tackle this issue, Reid Stockfeeds sought vehicle tracking options that could enhance operational efficiency.
Teletrac Navman has helped us meet these goals because we have each farm plotted. By seeing where the farms are, we can fill each truck in order of delivery and send our drivers on the best route.
- Andrew Snowdon, Chief Financial Officer
Solution:
After considering various alternatives, Reid Stockfeeds chose Teletrac Navman based on recommendations and their Telstra account manager. They installed Teletrac Navman Tracking in 13 vehicles, with plans to expand as they incorporate a new mill into their operations. The fleet management software system allows the company to optimise deliveries by plotting each farm's location, ensuring that trucks are filled in the proper order and sent on the most efficient routes.
Delivery improvements have helped us reduce delivery freight costs from 7% to 5% of our total expenditure. That’s a saving of $880,000 pa. Also, at first our drivers were suspicious of the tracking devices but now they’re fine and appreciate that they don’t have to do Runsheet’s anymore since we use the GPS to track where they are.
Results:
The implementation of Teletrac Navman has resulted in significant benefits for Reid Stockfeeds, as highlighted below:
- Reduced Freight Costs: Achieved an 2% reduction in overall delivery freight costs, equating to approximately $880,000 in annual savings.
- Increased Delivery Efficiency: Improved organisation in deliveries, leading to enhanced operational workflows.
- Automated Runsheet’s: Fewer driver discrepancies and improved data accuracy for performance reviews.
About Reid Stockfeeds:
Reid Stockfeeds has been a leading supplier of mixed feed in Victoria for 25 years, operating two mills and recently acquiring a 50% stake in a third mill. With a strong focus on customer service and efficient deliveries, the company is poised to grow its annual turnover to between $70 and $80 million. The integration of Teletrac Navman technology has not only enhanced their operational efficiency but also solidified their commitment to delivering high-quality service to their customers.