Shipper | Case study
Door-to-door shipping: Tire manufacturer steers away from steamship line-managed dray thanks to Schneider’s Port Logistics expertise
Custom Port Logistics solution diminishes demurrage and per diem and increases freight visibility
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.
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.
New carrier must-haves
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 ability to flex capacity
Robust reporting features
Its proven start-up and implementation capabilities
The customized port plan for handling inbound ocean containers
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. The 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.
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