Freight capacity optimization: using Capacity Stacking to move more freight

• Capacity Stacking improves resilience and service reliability by layering transportation modes and services.

• A multimodal strategy can unlock significant cost savings and operational efficiencies that optimize networks, reduce congestion, improve lead times and lower costs. 
• Adding the right capacity at the right point in the supply chain supports growth without sacrificing performance. 

Three shippers across different industries have actualized success as they’ve continued to add multimodal transportation to their logistics strategy, making Capacity Stacking an integral aspect of their operations. Here is a quick look at how Capacity Stacking has recently driven significant change and results in their operations.  

• Type of shipper: A national manufacturer of processed foods

• Length of Schneider relationship: 20+ years
• Schneider services: Van Truckload, Intermodal, Brokerage

As the company grew and load volume increased, the manufacturer needed its transportation to be more nimble, flexing with demand. Schneider leveraged technology that instantly taps into its brokerage service to move a load if it can’t be serviced through contracted modes.

For the shipper, the transition between modes was seamless because the load was accepted at the pre-approved rate and Schneider continues to manage the move from start to finish. The Collaboration feature is a unique solution made possible by our multi-modal service offering, further showing the importance of layering transportation modes and technology.

In an 11-month time span, Schneider moved 169 loads with its brokerage division for the manufacturer that would not have been possible through other modes. Tender acceptance jumped five percentage points in that timeframe (from 92% to 97%) with an on-time delivery rate hovering between 96-97%.

• Type of shipper: A manufacturer specializing in plumbing and energy products

• Length of Schneider relationship: 30+ years
• Schneider services: Van Truckload, Intermodal, and Supply Chain and Distribution Management (Warehousing, Transloading, Port Drayage, Managed Transportation)

Schneider helped the shipper navigate company growth, surge needs and congestion points stemming from its Mexico facility. Comprehensive supply chain assessments and the implementation of Schneider’s suggested network optimizations across multiple service offerings kept lead times from getting too short and costs from getting higher.

$2 million collective savings across the different modes of transportation.

• Type of shipper: Manufacturer of cleaning and sanitizing solutions

• Length of Schneider relationship: 30+ years
• Schneider services: Bulk, Bulk Intermodal, Bulk Dedicated

Product is loaded and shipped 24 hours a day, which increased capacity by 35%. Adding an additional service offering where it was needed most kept product moving, prevented skyrocketing cost increases, and ensured business wasn’t lost during a time when the shipper was looking to grow its business. Importantly, Schneider’s high standard of safety was maintained throughout the surge in operations, and no major incidents or injuries resulted.

98% on-time delivery service even with the number of loads increasing by 35%.

Finding ways to strategically use available capacity will enhance and add resiliency to a shipper’s supply chain. Combining different services, technology and multiple modes of transportation will drive efficiency, productivity and cost savings — a triple threat that will result in big benefits to the bottom line.