Shipper | Case study 5 min. read
Grocery logistics: Cost-savings with dedicated transport
Executive summary
A global grocery store chain needed a refrigerated transportation solution that could support rapid expansion while maintaining product quality, reliable store replenishment and consistent service levels. As the retailer grew its U.S. footprint, it required dedicated capacity, overnight unattended deliveries and a transportation provider capable of adapting to increasingly complex operating requirements. Schneider Dedicated developed a customized refrigerated transportation solution built around specialized drivers, multi-temperature equipment and dedicated support. The flexible model continues to help the retailer keep stores stocked, support growth and maintain a dependable grocery supply chain.
Key takeaways
- Strong cold chain performance combines the right equipment, visibility, planning and expertise to protect product integrity.
- Real-time monitoring and proactive risk management help prevent spoilage, claims and service disruptions.
- Specialized refrigerated expertise turns cold chain best practices into consistent execution.
Background
The customer is a global grocery store chain focused on providing high-quality fresh, frozen and grocery products to consumers. After establishing its first U.S. distribution center, the retailer expanded rapidly across the East Coast, growing to more than 180 stores. As expansion accelerated, so did the need for a grocery logistics solution capable of supporting a growing network while maintaining consistent service and product availability.
The retailer needed more than refrigerated transportation. It needed a provider capable of supporting specialized store delivery requirements, guaranteed capacity and future growth. Schneider's experience designing customized Dedicated solutions, combined with its ability to provide dedicated equipment, drivers and operational support, aligned closely with the retailer's evolving needs.
Challenge
Keeping stores stocked without interrupting operations
The retailer's business depends on products being available when customers need them. Fresh, frozen and ambient products must arrive on schedule and be ready for associates to stock before stores open each morning. Any delays can disrupt store operations, create inventory challenges and put customer satisfaction at risk.
Executing a highly specialized delivery model
Unlike a typical grocery transportation operation, the retailer relied on unattended overnight deliveries at individual stores. Drivers were responsible not only for transportation but also for selecting freight, loading products across multiple temperature zones and placing products in the appropriate locations within each store. The operation required a level of expertise, reliability and consistency not every transportation provider could support.
Securing dedicated capacity for continued expansion
As the retailer continued opening new stores, it needed confidence that transportation capacity would be available when and where it was needed. The company was looking for a flexible refrigerated transport and logistics solution capable of scaling alongside its growing business without compromising service quality.
Solution
Collaborative planning and solution design
Rather than forcing the customer into a standard transportation model, Schneider built a flexible solution designed around the retailer's operation and growth plans.
Schneider worked collaboratively with the retailer to design a Dedicated refrigerated transportation solution tailored to its specific operating model. The solution included:
- Dedicated tractors
- Multi-temperature trailers
- Experienced drivers
- A specialized account team to support the retailer's unique requirements
Schneider worked closely with the retailer to understand its delivery requirements, store operations and growth objectives before implementing the solution. Together, the teams established delivery processes, equipment specifications and operational procedures designed to support unattended store deliveries and multi-temperature freight handling.
By building a solution around the customer's operation rather than forcing the operation into a standard model, Schneider provided the flexibility needed to support long-term growth. This collaborative approach helped ensure the transportation solution aligned with the retailer's operational goals from day one.
Overnight deliveries keep stores ready for business
The retailer's success depends on freight arriving before stores begin daily operations. To support that requirement, Schneider developed an overnight delivery model that minimizes disruption while improving efficiency. Drivers pick up freight from distribution centers during evening hours and complete deliveries overnight, ensuring products are ready for associates to stock when stores open the next morning.
Because deliveries occur outside of peak traffic and business hours, the process improves productivity while helping stores maintain consistent inventory levels.
Specialized drivers manage multi-temperature freight
Each route requires drivers to manage refrigerated, frozen and ambient products within the same delivery operation. Drivers follow this process to help maintain product integrity while simplifying operations for store personnel:
- Pick products designated for multiple stores
- Load freight into specific sections of Schneider's multi-temperature trailers and maintain separation throughout the trip
- Upon arrival, deliver products directly to the appropriate refrigerated, frozen or ambient areas within each store
Built for unattended deliveries
The unattended delivery model requires significantly more involvement from drivers than a traditional delivery operation. Schneider drivers are entrusted to:
- Use store-issued access credentials to enter stores
- Unload products with pallet jacks and place freight in designated locations
- Collect empty pallets, crates and other materials for return to the distribution center after completing deliveries
This end-to-end approach creates a streamlined replenishment process and helps stores operate more efficiently.
Capacity that grows with the customer
As the retailer expanded its store network, Schneider's Dedicated model provided the capacity and operational consistency needed to support growth. Dedicated equipment, experienced drivers and a scalable transportation strategy enabled the retailer to continue expanding while maintaining service expectations throughout its network.
Precision execution every day
Executing the solution requires detailed coordination across distribution centers, drivers and Schneider's account team. Each shipment must be accurately picked, loaded, transported and delivered within tight time windows while maintaining temperature requirements across multiple product categories. Schneider's disciplined operating processes help ensure freight arrives where it needs to be, when it needs to be there.
Key result: The solution provided the retailer with newer, more reliable equipment while reducing leased equipment expenses by more than $110,000 annually.
Results
Reduced costs through strategic fleet investments
As the relationship evolved, Schneider continued looking for opportunities to improve efficiency and reduce costs across the retailer's grocery logistics network. To eliminate pass-through charges associated with additional equipment rentals, Schneider invested in 10 new refrigerated trailers dedicated to supporting the account. The investment provided the retailer with newer, more reliable equipment while reducing leased equipment expenses by more than $110,000 annually.
Greater visibility across the refrigerated supply chain
Visibility is critical when managing temperature-sensitive freight across a growing store network. To align with the retailer's technology strategy, Schneider integrated the retailer's preferred ORBCOMM tracking and monitoring system into its refrigerated trailers and connected APIs to provide real-time shipment visibility.
Schneider also utilized the retailer's toll transponders to provide an additional layer of shipment tracking, giving the customer greater insight into freight movement across its network.
Improved service performance and delivery reliability
Schneider implemented overnight Driver Team Leader (DTL) support to provide real-time assistance for overnight operations. Having management support available during critical delivery windows allowed issues to be addressed quickly, helping improve service execution for both drivers and the customer. The enhanced support model contributed to increased on-time deliveries while also helping the operation handle a greater number of loads.
Optimized utilization to support growth
As freight volumes expanded, Schneider continued identifying ways to improve operational efficiency. To increase dayshift unload capacity at one of the retailer's distribution centers, Schneider implemented a slip-seat operation in which multiple drivers share the same truck across different shifts. Keeping equipment moving for more hours each day helped optimize fleet utilization, improved delivery efficiency and enabled Schneider to offer a lower fixed rate per shift.
A trusted transportation provider for continued expansion
What began as a solution for a highly specialized refrigerated operation evolved into a long-term strategic relationship. Through continuous collaboration, dedicated capacity and ongoing operational improvements, Schneider became the retailer's go-to transportation provider for refrigerated freight. Today, Schneider is the only refrigerated carrier supporting all three of the retailer's distribution centers, helping provide the capacity, reliability and flexibility needed to support continued store growth.
Explore refrigerated transportation solutions
If your operation depends on delivering temperature-sensitive freight with precision, Schneider Dedicated can help you build a solution aligned to your network, delivery requirements and growth plans. Get a quote and explore a refrigerated transportation solution designed for your business.
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