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Shipper Case Study

Custom dedicated shipping solution solves retail supply chain issue

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While every company’s leader wants business to boom, growth does come with challenges — like finding a dedicated carrier that can accommodate rapid expansion and changing retail logistics. A discount retail chain based in the Northeast recently experienced this conundrum after it added over 100 stores in just three years.

Dedicated transportation truck next to retail store

Small transportation provider couldn’t keep up with retail logistics expansion

When the retailer opened a new distribution center in the Southwest in 2020, it needed a transportation provider to service this distribution center and 27 area stores. The retailer called on Schneider to provide a dedicated logistics solution.

For its operations in the Northeast, the retailer continued working with a small, local transportation provider. However, the retailer soon found that working with a small carrier left it vulnerable to disruptions. After the local carrier experienced an ownership change, the retailer realized how easily business changes could disrupt its supply chain. Plus, the local transportation provider had a small team; when a driver wasn’t available, there wasn’t always a backup driver available to take their place.

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Since the retailer already had contracted dedicated transportation services with Schneider in the Southwest, they knew Schneider had the experience it needed to bolster its shipping operations when they experienced capacity constraints in the Northeast. It asked Schneider to create a temporary fleet that could help fill in the gaps left by its current transportation provider, which was exacerbated by the surge in holiday demand.

A quick dedicated logistics solution saved the retailer money and prevented supply chain disruptions

Schneider provided a quick dedicated solution that prevented disruption in the retailer’s supply chain, engineering a network in less than a week. The Schneider team priced services for the retailer in only 24 hours, and it sourced drivers in just 48 hours. Schneider tapped into its large network of drivers and assets to assemble a team of five drivers. They transported 22 loads per week to ensure the retailer had the freight capacity it needed to accommodate a two-month holiday surge.

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Not only was Schneider’s solution delivered quickly, but it also saved the retailer money and hassle. Previously the retailer used the spot market to fill gaps in its shipping when its local transportation carrier did not have capacity. This practice increased the retailer’s costs. Schneider’s engineering expertise was able to save the retailer an estimated $200,000 in eight weeks when compared to the higher-priced spot market.

Schneider’s Dedicated drivers and custom retail logistics solution helped grow the business

The Schneider team built up its knowledge of the retailer’s business needs; Dedicated drivers were trained to accommodate any particularities in the retailer’s transportation requirements. In this case, Schneider looked for especially experienced drivers because many of the retailer’s stores were located in strip malls and tight locations with challenging docks to navigate. As part of the retailer’s Dedicated team, the same drivers are traveling the same routes. This practice allows them to become familiar with the stores they are delivering to and to build relationships with the store managers they’re servicing. It also helped the drivers achieve a 97% on-time delivery rate for the retailer’s shipments.

A large network also meant that Schneider could provide nimble, scalable solutions. The number of drivers or trailers could be flexed up or down if the retailer’s shipping volumes changed. For example, when the retailer acquired a warehouse full of products in the Midwest, Schneider was able to engineer a solution to move 350 loads of inventory back to the retailer’s distribution centers.

The flexibility and custom retail logistics solutions that Schneider provided have been able to grow along with the retailer. With Schneider at the wheel, the retailer can rest assured that it’s getting efficient, effective service.

Talk to an expert to learn more about Schneider’s Dedicated transportation services.

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Published July 2021

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