Supply Chain World - Volume 7, Issue 3 - 105

costa farms retail

Costa Farms' supply chain deals
with roughly 25,000 truckloads
and 2,000 shipping containers
on an annual basis in the United
States and Canada.

es because our product is alive," says Ryan McFarland,
vice president of supply chain management. "It can't sit
in a non-temperature-controlled environment for a long
time and cannot flow through the cold chain network."

rolled out phase one this summer. "It's not just an IT
project," McFarland says. "This is a unique opportunity
for our company to drive a business transformation."
To help implement the new ERP system, Costa
Farms partnered with Sage Group, commonly known
as Sage, which is a British multinational enterprise
software company. It also partnered with Practical
Software Solutions, an authorized Sage partner based
in Concord, N.C., which offers accounting, manufacturing, distribution, service management and professional services.
"By bringing in the new software, we are prompting
ourselves to take a look at all of our business processes
and identifying areas where we can be more efficient and
ultimately provide innovative solutions for our customers," McFarland says.
Costa Farms plans to go live with three sites by December and the balance by September of next year.
"Beyond the capital investment, it's a significant invest-

Hub and Spoke
One of the new logistics capabilities that Costa Farms
strengthened this year is hub-and-spoke distribution.
Hub-and-spoke distribution centers receive large shipments which are then broken down into smaller shipments and transported to their final destinations. For
Costa Farms, those destinations include major retailers
like Lowe's, Walmart and Home Depot.
"We can now pre-position inventory closer to the
market and respond to demand faster during peak
sales periods," McFarland adds. "This is important for
highly seasonal products such as ours. For every day
you are out of stock you lose sales that you will never
get back. Hub and spoke reduces replenishment lead
times, which mean more sales opportunities across
the supply chain."
To have access to hubs throughout the United States,
Costa Farms partnered with three third-party logistics
providers: Container Centralen, C.H. Robinson and
Neutral Logistics. It now has access to one hub in Houston, two in Atlanta, one in Boston and plans to add more
throughout the United States.

Business Transformation
Costa Farms is also in the process of implementing a
new enterprise resource planning (ERP) system, having
VOLUME 7, ISSUE 3 Supply Chain World

105



http://www.leftcoastlogisticsllc.com

Supply Chain World - Volume 7, Issue 3

Table of Contents for the Digital Edition of Supply Chain World - Volume 7, Issue 3

Contents
Supply Chain World - Volume 7, Issue 3 - Cover1
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