Leading US Fast Food Retailer Unlocks 50% Faster Freight Procurement with AI

Fragmented logistics processes hindered efficiency and visibility

The restaurant giant was struggling with an increasingly complex freight procurement system that required the execution of nearly 20 RFQ cycles annually. Their procurement team was overwhelmed by manual processes that consumed valuable resources and created operational bottlenecks throughout their supply chain network. 

The creation of RFP templates was particularly demanding, requiring separate versions for each brand, carrier type, and product category. With multiple brands under management, this created an extensive matrix of templates that required constant updating and maintenance. Data collation from multiple sources was equally cumbersome, involving extraction from various systems and manual consolidation into spreadsheets before bids could even be initiated. 

Communication with carriers occurred entirely offline through emails, phone calls, and spreadsheet exchanges. This fragmented approach led to significant delays in information sharing, increased the risk of miscommunication, and made it difficult to track the status of negotiations across hundreds of lanes. The lack of a centralized communication platform meant that procurement specialists spent excessive time managing correspondence rather than focusing on strategic decisions. 

Pando Automates Freight Procurement Smoothly. 

— Logistics Manager

The manual negotiation process across their extensive distributor network presented additional challenges. The company's first right of refusal process required sequential communications with various stakeholders, creating delays and limiting the ability to quickly identify and secure optimal rates. Without a standardized digital process, negotiations often varied in approach and efficiency, leading to inconsistent outcomes. 

Perhaps most challenging was the manual landed cost estimation across multiple brands. Supply chain analysts spent days compiling data from various sources, calculating landed costs for thousands of products across different distribution centers. This time-consuming process not only delayed decision-making but also created inconsistencies in pricing and limited visibility into true transportation costs. With freight costs buried within landed costs, the company struggled to identify opportunities for optimization or accurately assess the impact of transportation decisions on overall profitability. 

Achieving 50% faster procurement with AI technology

Implementing pre-configured digital RFQ templates

Pando introduced pre-configured digital templates that standardized and streamlined the RFQ creation process across all brands. The intelligent template system incorporated brand-specific requirements while maintaining a consistent structure, eliminating the need for manual template creation and maintenance. Procurement specialists could now generate comprehensive RFQs in minutes rather than days, with automated data population from integrated systems ensuring accuracy and completeness.

Enabling real-time carrier collaboration platform

The solution established a unified digital platform where carriers could be onboarded quickly and communicate in real-time throughout the procurement process. Interactive bid submissions replaced static spreadsheets, allowing carriers to provide detailed information and respond to queries within the platform. Automated notifications kept all stakeholders informed of updates, while structured communication channels eliminated the confusion of lengthy email chains and ensured consistent information sharing across all participants.

The time spent on the RFQ creation has been significantly reduced by using Pando.

— Logistics Manager

Automating bid comparison and evaluation

Pando's AI-powered analytics transformed the bid evaluation process by automating complex comparisons across multiple dimensions. The intelligent evaluation engine analyzed carrier bids across lanes, rates, service levels, and historical performance metrics, presenting side-by-side comparisons that highlighted optimal choices based on customizable criteria. This data-driven approach enabled procurement specialists to make informed decisions in a fraction of the time previously required, identifying the most competitive offers while considering factors beyond just price.

Unifying negotiation and award processes

The platform consolidated all negotiation activities, rate matching, and award processes into a single cohesive workflow. This unified approach provided complete visibility into the status of each negotiation, enabling better coordination and consistency across the distributor network. The streamlined process supported the company's first right of refusal protocols while significantly reducing cycle times, with automated notifications guiding stakeholders through each step and maintaining momentum throughout the procurement cycle.

Implementing automated landed cost estimation

The solution's automated landed cost calculation capabilities eliminated the need for manual spreadsheets and inconsistent methodologies. The AI-powered system integrated transportation rates, handling fees, and product costs to calculate accurate landed costs across brands and lanes in real time. This automation not only saved countless hours of analyst time but also provided deeper insights into cost drivers, enabling more strategic decision-making about carrier selection, lane assignments, and distribution network optimization.

Enhancing analytics for strategic decisions

Comprehensive post-bid analytics transformed the company's approach to freight procurement strategy. Interactive dashboards provided visibility into key performance indicators, including cost trends, carrier performance, and lane efficiency. These analytics enabled the team to identify opportunities for consolidation, negotiate more effectively based on data-driven insights, and make strategic decisions about network design. The visibility into true transportation costs uncovered previously hidden savings opportunities, contributing significantly to overall supply chain cost reduction.

Providing high-touch support for implementation

Pando's implementation team delivered specialized support throughout the transition, combining technical expertise with industry best practices. This collaborative approach ensured that the platform was configured to address the company's specific challenges and integrated seamlessly with existing systems. Comprehensive training programs accelerated adoption across the organization, while ongoing support ensured that the procurement team could fully leverage the platform's capabilities to drive continuous improvement.

By implementing Pando's AI-Powered Freight Procurement solution, the leading US restaurant company transformed its logistics operations from a fragmented, manual process to a streamlined, data-driven workflow. The 50% reduction in procurement cycle time, complete automation of RFQ-to-contracting, and 60% improvement in team productivity have delivered substantial operational benefits while enabling significant cost savings across their extensive distribution network.

The digitalization of the freight procurement process has fundamentally changed how the company interacts with carriers and distributors, creating greater transparency and collaboration throughout the supply chain. Real-time analytics and automated landed cost calculations have provided unprecedented visibility into transportation costs, enabling more strategic decision-making and optimization of the distribution network.

Beyond the immediate efficiency gains, the implementation has positioned the company for continued supply chain excellence as they expand their global footprint. The scalable digital foundation provided by Pando not only addresses current challenges but also creates a platform for ongoing innovation and adaptation to changing market conditions, ensuring that this restaurant giant can maintain its competitive edge while controlling costs in an increasingly complex logistics landscape.