Schneider Delivers a 5X Faster Shipping Solution to Furniture Manufacturer

BACKGROUND: MANUFACTURER KNOWS IT ALONE CAN’T MEET CONSUMER SHIPPING EXPECTATIONS

A furniture manufacturer based in North Carolina knew that its delivery service needed to change to mirror consumer expectations for product deliveries. As more consumers turn to online outlets to purchase furniture and home furnishings, the expectations for quick delivery of large and bulky items are rising. Knowing that furniture and home furnishings are projected to be the categories with the biggest increase in online sales over the next year, the manufacturer looked to Schneider for a way to improve its shipping processes and decrease shipping times.

SITUATION: OUTDATED SHIPPING MODEL WASN’T DELIVERING QUICKLY ENOUGH

consumers expect quick shipments

E-commerce has changed the length of time in which consumers expect to receive their goods. Across all product categories, the average time that a consumer expects to receive an online purchase is now only four and a half days.

The manufacturer’s current shipping process – an outdated, stop-and-go LTL model – was trailing far behind customer expectations. The manufacturer was working with multiple carriers who would pick up a single piece of furniture and bring it to a distribution center, where it would sit until enough freight had accumulated to fill a full truckload. Only then would the furniture be delivered. It was taking the manufacturer between 11 and 30 days to ship a single piece to its destination.

shipping furniture

On top of this, the manufacturer was trying to coordinate shipping with multiple carriers at once. A lack of visibility into the process, especially when it came to tracking shipments, only exacerbated the inefficiency of the shipping process.

SOLUTION: HUB-AND-SPOKE MODEL KEEPS FREIGHT MOVING

Schneider replaced the manufacturer’s multiple-carrier model with a hub-and-spoke model using a single carrier, Schneider First-to-Final-Mile. Schneider moved the manufacturer’s products on a daily basis to a consolidated terminal and then to the destination. Not only was this process faster, it involved less handling and therefore fewer opportunities for products to be damaged en route.

Schneider provided one point of contact for the manufacturer, and regular meetings between the contact and manufacturer helped ensure management of the shipping process went smoothly. Additionally, the manufacturer could easily track shipments and have access to relevant data through Schneider’s dashboard.

RESULTS: SCHNEIDER PROVIDED A SHIPPING PROCESS 5X FASTER THAN PREVIOUS MODEL

On-time transit time

By replacing the manufacturer’s multiple-carrier, stop-and-go model with a single-carrier, hub-and-spoke model, Schneider significantly reduced shipping time. With a single Schneider contact and a dashboard full of data, the manufacturer gained an efficient way of tracking shipments and problem-solving any issues that may arise. After only one month of working with Schneider, the manufacturer saw significant results:

  • Transit times decreased from 11–30 days to only three to six days, up to five times faster than the manufacturer’s previous shipping process.
  • With Schneider, the manufacturer experienced a 95 percent on-time delivery rate.
  • One in four deliveries arrived at least one day ahead of the scheduled delivery date.
  • The manufacturer had visibility into the progress of its shipments.

Schneider First-to-Final-Mile delivered the furniture manufacturer a streamlined shipping process that decreased transit times to meet or exceed consumer expectations and provided much-needed visibility into the shipping process. The manufacturer is no longer lagging behind but instead charging full speed ahead when it comes to modern-day expectations.

To learn how Schneider can help your company deliver over-dimensional goods more efficiently, contact us at solutions@schneider.com.

Published September 2018