Crossing Borders

Throughout the decades, one aspect of the United States' relationship with Mexico has remained constant -- Americans have an insatiable appetite for cuisine from the other side of the Rio Grande. For the past 30 years, Border Foods Inc. has given Americans an authentic taste of Mexico. As the world's largest green chile pepper processor, America's leading jalapeno pepper processor and a major producer of salsas and enchilada sauce to restaurants and grocers, Border is one of the country's premier providers of Mexican food.

 

Headquartered near Dallas with operations running out of Deming, New Mexico, Border provides its bulk ingredients, food service and retail products to national retail chains and major food service providers.

 

Due to tremendous growth, Border's logistics model had become extremely cumbersome, requiring employees to manage freight out of multiple warehouses, each run by a different warehousing company that followed different sets of procedures. Needless to say, this system consumed work hours and was, by the very nature of its complexity, prone to error. Border needed a much simpler warehousing and transportation infrastructure.

 

The ideal system would also have the technical capability to integrate with Border's advanced computerized customer ordering system and offer up-to-date information on inventory with 24/7 visibility.

 

Border enlisted CaseStack in a four month pilot test, using the logistics provider for warehousing and transportation service to several of its major retail customers. Upon completion of the test period, the Border team concluded that working with CaseStack was a success.

 

CaseStack now handles the majority of Border Food's national logistics needs and utilizes all of its U.S. warehouse locations, including Los Angeles, Dallas, Atlanta, Chicago and Scranton. Border products are manufactured at a plant in Deming, New Mexico and then self-shipped to the aforementioned warehouses, with CaseStack handling all logistical needs from warehouse to retailer or food service provider.

 

With the warehouse system transition complete, Border saw immediate benefits. Before, Border employees had to manage freight out of several different warehouses run by various companies, each with its own set of procedures. The entire process was labor intensive, stressful and prone to error. "The previous system was like a patchwork quilt of warehouses with multiple relationships to manage," says David Gregory, director of Planning and Logistics for Border Foods Inc. "CaseStack has streamlined operations, so that we only have to deal with one methodology for tracking items."

 

The system ensures consistency in the way orders are handled and inventory is managed. Moreover, a common set of procedures provides better service to customers by offering predictability and transparency so that clients can be constantly given accurate, up-to-date information regarding orders and availability.

 

Border Foods also leans on CaseStack to provide proper stock rotation practices. "CaseStack provides the consistency that we require, making sure that products are shipped in the correct order," continues Gregory. "It's reassuring to know that all its warehouses are following sound stock rotation procedures."

 

Border derives further benefit from the fact that all CaseStack warehouses containing food are certified by the American Institute of Baking (AIB) -- the industry standard for high quality for food service warehousing. All CaseStack warehouses containing food items have an AIB "superior" rating.

 

"Before CaseStack, Border had to go through the laborious task of individually confirming that each warehouse was receiving an adequate grade," says Gregory.

 

Border also benefits from CaseStack's proprietary, Web-based system that enables employees to track inventory and shipments in real-time, 24/7 online. CaseStack provides complete inventory management for Border, alerting them to shortages, damages and inbound versus outbound discrepancies.

 

"We can check inventory anywhere, any time," says Gregory. "When I'm on the road or on a sales call, I can log in to the system and instantly tell customers whether or not we can meet their order."

 

CaseStack's technology also allows clients to either place orders directly into the system or integrate with their own electronic order systems. IT specialists coordinated the integration process to create a solution that addresses Border Food's needs.

 

Border was already utilizing Electronic Data Interchange (EDI), which CaseStack linked to its own system so that as customers input orders into Border's EDI interface, the information populates the CaseStack system. This integrated arrangement not only saves time for Border employees, but also reduces risk of error by simplifying the order-taking process.

 

CaseStack technology also allows Border Foods to manage inventory by "lot code," an essential feature in the food manufacturing industry. In the event of a recall, this enables Border employees to link into production dates to certain lots of goods, making them easy to locate.

 

The integrated arrangement enables the Border team to remain informed regarding what is going on at the warehouses, constantly communicating with CaseStack via e-mail and phone so that they aren't caught off guard with shipments.

 

CaseStack also manages Border's involvement with its consolidation program, providing shipments to Wal-Mart distribution centers nationwide. The consolidation program combines less-than-truckload shipments from various vendors to create a full truckload, allowing for cost-savings on transportation and mitigating rising fuel costs - and it is environmentally friendly too. Consolidated shipping is estimated to save 8,800 pounds of CO2 from entering the atmosphere.