Door-To-Door Shipping: Tire Manufacturer Steers Away From Steamship Line-Managed Dray Thanks to Schneider’s Port Logistics Expertise

A PRESENT STATE OF PORT AFFAIRS

Lack of capacity. Sitting freight. Demurrage and per diem charges. This may sound like a load of bad luck, but for shippers importing and exporting products at the port, it’s par for the course. And this course ends in busted budgets and torn-up timelines.

Tired of supply chain hiccups and less-than-impressive carriers, an American tire manufacturer decided enough was enough: It was time to say sayonara to the status quo of dismal door-to-door shipping.

JUMPING (STEAM) SHIP: DETERMINED TO DITCH PORT DRAYAGE DILEMMAS

In this tire manufacturer’s world, door-to-door shipping meant the steamship line called the shots when it came to importing the manufacturer’s rubber and moving it to the warehouse. The situation wasn’t perfect, but the manufacturer found itself stuck between a rock and a hard place: The lack of visibility and control over the freight left the company unable to act nimbly if a problem cropped up, and there was no real insight into its true transportation costs. But, it was too accustomed to the current operations to make a major change.

Push finally came to shove when the manufacturer needed to open a new warehouse. The manufacturer knew demurrage and per diem finally needed to be the exception, not the rule. It also wanted to have real-time knowledge of the freight’s whereabouts. In addition, the rubber had to ship out from the new warehouse when it was needed; any delays or added costs in getting it there could put its supply chain in jeopardy. With the opening on the near horizon, the manufacturer was ready to shift from door-to-door shipping managed by the steamship line to a transportation provider with port logistics expertise.

NEW CARRIER MUST-HAVES

New carrier must-haves include timely shipping, real-time visibility and no fees or added costs

As the search for a transportation provider began, the manufacturer armed itself with actionable intel — from research and RFPs to experts and education. Once it understood the available options, all signs pointed to the value of a single transportation provider that could implement a containeryard delivery solution. Ongoing communication with Schneider specifically revealed what the manufacturer needed: a carrier with extensive port knowledge, the ability to provide a custom port logistics solution, and the technology and project management skills to execute the solution.

The American tire manufacturer was impressed with the information Schneider shared about its port knowledge and capabilities, most notably:

The manufacturer was impressed with Schneider’s proven start-up and implementation capabilities, the ability to flex capacity, the customized port plan for handling inbound ocean containers and robust reporting features

Its proven start-up and implementation capabilities

The manufacturer was impressed with Schneider’s proven start-up and implementation capabilities, the ability to flex capacity, the customized port plan for handling inbound ocean containers and robust reporting features

The customized port plan for handling inbound ocean containers

The manufacturer was impressed with Schneider’s proven start-up and implementation capabilities, the ability to flex capacity, the customized port plan for handling inbound ocean containers and robust reporting features

The ability to flex capacity

The manufacturer was impressed with Schneider’s proven start-up and implementation capabilities, the ability to flex capacity, the customized port plan for handling inbound ocean containers and robust reporting features

Robust reporting features

SETTING THE STAGE FOR SUCCESS: PREPARING AND IMPLEMENTING A PORT DRAYAGE PLAN

The manufacturer and Schneider worked side-by-side to prepare for a seamless warehouse opening. Then, they hit a massive bump in the road. Without warning, the manufacturer was forced to find a new warehouse location, and Schneider had to adapt its port plan — fast. The transportation provider quickly and expertly prepared for the inbound ocean containers as if nothing had changed. For the next six months, Schneider flexed its capacity, ensuring the warehouse was stocked and ready to meet any inventory need.

REALIZING A BETTER BOTTOM LINE FROM A CUSTOM PORT LOGISTICS SOLUTION

Freight visibility and communication were non-negotiables — and Schneider delivered.

A text checklist that describes how the Schneider transportation teamTHE TRANSPORTATION TEAM:

Built rapport and trust by staying in constant contact with the warehouse managers

Proactively relayed vital information to the manufacturer, giving it incomparable insight into its freight

Flagged even the slightest chance of there being accessorial charges

The bottom line: the manufacturer was seeing the value it had once only hoped for.

Armed with the right information at the right time, the tire manufacturer found the right provider — one with extensive port logistics knowledge. Its port problems are firmly in the past, and more rubber is (literally) meeting the road. The manufacturer considers Schneider to be an invaluable asset to its business and has even awarded the transportation provider additional business at its Savannah location. Overcoming those longstanding business blahs was a true triumph — and the manufacturer could not be happier with its decision to break from the status quo.

Looking for a custom port logistics solution to enhance your supply chain? Contact solutions@schneider.com.

Published September 2019