Effective Route Planning Helps Maintain Profitability

Client: JayWay Distribution Ltd.

Jayway Distributing Limited was founded over 20 years ago by business partners Ralph McCartney and Jim McAllister.  Under the name Double M Distributing, the company began as a small ice cream distributor. Several years later Double M Distributing decided to expand its services to accommodate the distribution of Neilson’s milk. They called this new division Jayway Distributing Ltd.

In the early 1990’s, when Neilson’s decided to discontinue its ice cream production, Jayway needed to fill their schedule with replacement products to stay afloat in a competitive market. Jayway increased its distribution of milk and other dairy products to make up for the absence of ice cream.

Jayway was able to easily transfer their well­honed knowledge of refrigerated transport to the distribution of milk. However, milk distribution is a very different market, and so the change in products also triggered modifications in the company’s business goals and their approach to distribution.

The dairy industry operates on high volumes and low profit margins. The small profit that is made off each individual carton of milk is low, making issues of accuracy and efficiency especially important.

Today, Jayway is still a thriving milk and ice cream distributor with over 60 employees and representing several major brand names in dairy. They distribute their products to more than 400 independent customers and between 86­ - 90 chain stores.

Jayway has been using Food Decision Software’s food specific distribution software since 1993.  They last upgraded in November 2009 and are currently using WinFDS version 6.0.

Jayway describes their approach to business as being proactive rather than reactive. In a high volume, low margin industry it is important to reduce costs wherever possible. Using WinFDS Software, Jayway is able to cost out daily profits on routes to maximize efficiency and to minimize avoidable expenses. In a competitive industry, having cost knowledge is imperative to maintaining contracts with customers.

Further efficiencies are gained by using WinFDS to coordinate batch picking reports. They also use the software to accurately measure milk product to reduce waste. Multi­period sales analysis’ and stock status reports allow Jayway to optimally maintain inventory levels reducing days in inventory, therefore reducing inventory costs.

Other Case Studies >>