Pig prices impact delivery costs

Established in 1942, Piperstone Veterinary Services specializes in health and nutrition products for the pig farming industry. It supports over fifteen hundred pig farmers and is the largest swine veterinary clinic in the United States.

From their main warehouse in Minnesota, they pick, pack, and process daily orders for all fifty states, and have historically outsourced their delivery function to companies like UPS and FedEx.

A consequence of the pandemic was a decline in pork product prices. Pipestone recognized that their customers were feeling the strain of these falling prices, which were resulting in decreased profit margins for farmers.

"It was a tough time for pig prices, and freight charge was a high cost for our customers, so we needed to find a way to remove that pain for them."

Pipestone identified delivery as an area where they might be able to help reduce costs for their customers. They typically deliver heavy and perishable items, which can incur high delivery fees. To explore ways to lower these costs, Pipestone decided to investigate whether managing its own delivery in-house could be beneficial.

Saving the bacon

In February 2024, they began a three-month trial using Circuit for Teams to manage their last-mile delivery. Initially, they intended to use Circuit for just one route per week, but it soon became clear that this new delivery method was proving to be highly successful.

Customer feedback was overwhelmingly positive. Recipient notifications were clear and timely, which helped prevent medicine deliveries from being left on doorsteps in damaging temperatures, as farmers now knew exactly when to expect their packages.

"Recipient notifications mean we’re able to reliably tell our clients when that product is going to be there.”

The number of missing items also decreased significantly thanks to proof of delivery photos and geotags, which accurately indicate where packages have been left. This feature is particularly valuable on a farm, which may have around twenty different buildings, most of which are not named.

The speed of delivery has also enhanced animal welfare. Farmers with unwell pigs can now order the necessary medicine by 4 p.m. and receive it the following morning. This timely delivery gives them the best possible chance to improve a pig's declining health.

Free delivery for Farmers

Within three months, every delivery located within a reasonable distance from their main warehouse was being managed using Circuit and delivered weekly by their in-house team of drivers.

The financial efficiencies achieved by bringing their delivery operations in-house resulted in a 40% reduction in delivery costs, saving approximately $15 to $20 per delivery.

These significant cost savings allowed Pipestone to achieve its goal of easing the financial burden on its customers by modifying its business model to now provide free delivery for all orders.

“We essentially see virtually no errors with Circuit. We don't see any damages or delays.”

Other operational benefits are also being felt throughout the business. With end-to-end control of the supply chain, the issue of damaged or perished items has been nearly eliminated.

Biosecurity has also improved as Pipestone’s in-house fleet is able to disinfect vehicle and driver touch points between farm visits, hugely reducing the risk of contamination and disease outbreak, another aspect of their new delivery service that has been well-received by customers.

Having transformed its delivery operations, Pipestone now plans to examine how to improve fulfilment within its supply chain and roll out the in-house delivery team model across its clinics nationwide.

Note: Circuit for teams is saving thousands of businesses at least 20% on delivery costs. Try it free for 7 days.