At-the-Ready Capacity Improves Service, Increases Payload

Lightweight Solution and Agile Capacity Creates One-Stop-Shop

Background: MANAGING INCREASED FREIGHT WITHOUT EXPANDING PRIVATE FLEET

A retailing group with nearly 770 supermarkets in the East Coast and Great Lakes regions faced a challenge: accommodating weekend store deliveries while keeping overhead costs down. Additionally, it requested a lightweight truck solution to deliver increased payload for vendor-to-store shipments and shorter lead times to and within its Great Lakes markets.

Situation: PRIVATE FLEET SHORT ON CAPACITY TO MEET INCREASED DEMAND

The company needed the ability to manage heightened weekend outbound deliveries during peak season without expanding its private fleet of 100 tractors. On-time delivery was a critical factor in choosing a supplemental carrier, as was the ability to provide flexible capacity to meet demand spikes. The retailer/distributor turned to Schneider, an existing core carrier servicing inbound distribution center deliveries, to develop a strategy to augment its in-house freight capacity.

Schneider Solution: COMPLEMENT PRIVATE FLEET WITH CUSTOMIZED SOLUTIONS

Schneider’s engineered solution pooled a cost-effective blend of truckload services, including regional, dedicated, team and long-haul. The carrier’s portfolio of services, flexible capacity and lightweight equipment made this three-pronged approach a one-stop-shop solution.

Inbound Fleet Doubles as Dedicated Outbound

The customer ramped up regional capacity by 15 percent, relying on up to 15 Schneider drivers and trucks per day. Already servicing long-haul and regional loads from vendors to distribution centers, Schneider then redeployed these drivers to shuttle loads from distribution centers to stores for the final leg of delivery.

More Payload with Lightweight Solution

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The customer also sought a cost-effective, lightweight solution for increased-payload beverage shipments of 400 miles round-trip.

Using newly spec’d Schneider trucks, each 2,000 pounds lighter than the standard tractor configuration, the customer's payload increased by 9 percent.

As a result, the retailer’s customers received goods in fewer shipments, cutting overall freight costs from the vendor and relieving dock congestion. A Schneider dedicated solution with four drivers was used to complete these deliveries. 

Regional and Team Drivers Pooled for Efficiency

At the heart of the customer's unique challenge was the ability to quickly service online shopping deliveries within its Great Lakes market and long-haul service to the market from a New England distribution center. Previously, it had relied on a different carrier to complete these services but experienced long lead times and high margins of error.

Schneider engaged regional services to complete deliveries within the market, while employing team drivers to expedite shipments of goods on a lane from Pennsylvania.

This mix of services created the capacity to cover incremental weekend freight within the retailer’s regional distribution network as well as its long-haul routes. The customer achieved its service standards while regaining control over freight costs.

Results: SCHNEIDER’S CUSTOM SOLUTIONS LEAD TO POSITIVE OUTCOMES

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The customer experienced impressive results because of Schneider’s highly customized, engineered solutions to its unique challenges.

  • Lightweight equipment increased payload 9 percent
  • Improved margin of customer's profitability via faster cross-dock delivery times from the distribution center to the stores
  • Realized 99 percent on-time delivery
  • Attained 10- to 12-hour decrease in distribution center to Midwest lead times for online orders
  • Increased regional capacity by 15 percent

With the implementation of Schneider solutions, the customer exceeded delivery expectations, reduced overhead and freight costs and managed its Great Lakes business more efficiently. The working relationship continues as Schneider provides creative, effective solutions to service the customer’s unique freight requirements.

 

Published October 2014

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