Shipper | Case study 4 minutes, 20 seconds
Global grocery chain drives efficiency and cost savings with customized refrigerated transportation
Highly specialized, unattended delivery model ensures seamless store replenishment and fuels growth.
A European-based, global grocery store chain established its first distribution center (DC) in Virginia in 2015. Since then, it has expanded to more than 180 stores on the east coast of the U.S.
As the grocer began to establish itself along the east coast, it quickly realized it needed a dedicated transportation provider that could deliver mixed grocery shipments at high service levels, provide guaranteed capacity and service the unique, intense pickup and drop off needs of the account – including unattended deliveries at its individual stores.
Schneider worked collaboratively with the grocer, outlining its approach to providing dedicated refrigerated transportation services, including using its owned tractors, multi-temp trailers, drivers and skilled account team.
Overnight hours are critical to success
Not all providers are equipped to meet the rigorous demands the grocer’s freight requires, but Schneider’s highly specialized drivers skillfully manage overnight unattended deliveries in densely populated areas.
Warehouse pickups start between 7-9 p.m., and the freight is delivered to the stores in the early morning hours to reduce disruptions during normal business hours. This also increases driver efficiency and productivity, as drivers are not facing congestion or waiting for other deliveries to be unloaded. The freight is then ready and waiting at the store in the morning when associates come in for stocking.
Specialized delivery needs require experienced drivers to pick, load and unload mixed grocery freight
Unattended deliveries are much more demanding than a standard drop because drivers must load and unload the freight. The typical routine for this account requires:
- The drivers start at the warehouse, where they find, pick and load the freight needed for each store per the instructions on the bill of lading received that day.
- This typically entails 3-6 dock bumps at the warehouse to pick products for each of three store sections—refrigerated, frozen and dry.
- Product is picked for 3-7 stores, totaling up to 26 pallets on the trailer for overnight delivery.
- The driver will then use a pallet jack to load the product into the correct section of the multi-temp trailer.
- Upon arrival at the store, the driver will utilize a store-issued key fob to enter.
- The driver will unload the product needed from the trailer with a pallet jack, then place it appropriately in one of three areas in the back of the store: refrigerated, frozen or ambient.
- The driver will then reload the trailer with dunnage (e.g., empty pallets, crates, boxes or plastics) for return to the warehouse, unloading and disposal.
- Before leaving each store, they will update the paperwork, return the pallet jack, and plug in to charge.
Schneider utilizes experienced drivers to service the grocer’s needs because of unique nature of this work. New drivers serving the grocer’s business shadow current drivers for a full week before being entrusted to run their own deliveries, as well as receive training on refrigerated freight practices and pallet jack handling.
Ongoing collaboration fuels business growth
Schneider doesn’t stop at meeting specialized delivery requirements and is always collaborating with the grocer to identify where efficiency opportunities exist to further grow the grocery store chain’s business. Just a few of the benefits the grocer has experienced from the collaboration with Schneider are:
- Cost savings: To eliminate pass-through charges for additional equipment rental, Schneider invested in 10 new refrigerated trailers to service the account. This brand new, reliable equipment saved the grocer over $110,000 per year in leased equipment charges.
Visibility: The grocer prides itself on being very tech-forward. It was imperative that the refrigerated carrier they utilize be willing to use the grocer’s preferred tracking and monitoring system, Orbcomm. The grocer’s Orbcomm units were installed into Schneider’s trailers and connected APIs to provide real-time tracking. Schneider also uses the grocer’s toll transponders to further provide another tracking method.
- Increased loads and on-time deliveries: Schneider has also implemented overnight driver team leader (DTL) support to better facilitate service for drivers working those hours. This has greatly increased the service impact for the grocer by having a member of management available to address customer and driver concerns in real time. DTL support powered an increase in on-time delivery as well as an increase in loads completed.
- Delivery and fleet optimization: To expand dayshift unloads at one of the distribution centers, Schneider started working a slip-seat operation, in which multiple drivers share the same truck and rotate out based on their shifts. This keeps trucks moving, helping to optimize deliveries and fleet utilization. The slip-seat operation allowed Schneider to offer a lower fixed rate to the customer per shift.
Schneider is grocer’s go-to transportation provider
As a result of the collaboration between the two, the grocer routinely turns to Schneider first to help solve for its transportation challenges. In fact, Schneider is the only refrigerated carrier that services all three of the grocer’s distribution centers. and has become an indispensable asset in driving the grocer’s successful expansion across the east coast.
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