Dakota Supply Group (DSG)

Dakota Supply Group (DSG) is a Fargo, ND based company founded in 1898 that distributes electrical, communication, automation, utilities, waterworks, and mechanical supplies through a 15 branch network in the upper Midwest.

The Challenge:

DSG is an ESOP company that works aggressively at improving its customer service and its bottom line by continually upgrading its internal processes. DSG’s senior management recognized that freight cost management had become a growing challenge as the company expanded as each of its branches worked independently to setup carriers and to negotiate pricing to accommodate the services they required. A better approach was needed.

The Solution:

Basin Electric Cooperatives, Inc. a customer of DSG became aware of the challenge and recommended “KeyShip”, a Transportation Management System used by Basin that is provided by Logistics Planning Services (LPS), a St Paul, MN based Logistics Company. DSG engaged LPS to perform a cost analysis using KeyShip and the results showed that significant freight cost savings could be achieved using the system. In addition, DSG learned that KeyShip would also provided soft dollar savings for their company as all freight invoices would be pre-audited and paid by LPS; all freight claims would be processed by LPS and all DSG shipments would be tracked using KeyTrakker a key part of KeyShip. The day-to-day support provided by LPS in the area of transportation provides an additional bonus that made KeyShip a great solution to the DSG freight challenge.

The Bottom Line:

DSG enrolled in the LPS KeyShip system and today has standard transportation controls across their total organization. DSG uses KeyShip to manage both their supplier inbound shipping and their customer outbound shipping. Savings reports prepared by LPS monthly demonstrate the value of KeyShip to DSG. The bottom line is best stated by Brian Feickert, Director of IS at DSG, “We consider our strategic partnership with LPS a real asset to our ESOP Company."

Client Reference:

Brian Feickert
Director IS
Dakota Supply Group

Tele: 701-237-9440
Email: BFeickert@dsginc.biz