Case Study: Leading Tire Manufacturer Utilizes Pool Distribution
Synopsis: A leading U.S. tire manufacturer reached its goals to reduce costs and increase transit speed by partnering with eShipping.
This leading tire manufacturer designs, manufactures and sells tires for every type of vehicle. They also offer a full range of innovative services and solutions that help make mobility safer, more efficient, and more environmentally friendly.
This manufacturer had three main goals they wanted to achieve: 1) reduce freight costs; 2 minimize product touches in transit; and 3) increase transit speed. However, limited LTL capacity challenges along with increased shipment prices stood in their way.
THE GOAL:
FIND A WAY TO LOWER SHIPPING COSTS, REDUCING PRODUCT TOUCHES IN TRANSIT, AND INCREASE TRANSIT SPEED.
The company had three main goals they wanted to reach, but there were two obstacles standing in there way: low LTL capacity and increased shipment costs.
LTL capacity was low due to a driver shortage, making it difficult to book shipments. The incumbent carrier was altering the available linear feet pricing, which had adverse impact to the shipper. This made their transit times unpredictable.
The reduced LTL capacity also meant higher prices for shipments and booking with whoever would take their freight. This prevented the company from reaching their goal of cost reduction. They were needing a logistics expert to help them navigate the difficult market and reach their goals.
THE SOLUTION:
PARTNER WITH A LOGISTICS EXPERT TO HELP NAVIGATE THE UNPREDICTABLE MARKET AND REACH THEIR GOALS
Through a mutual contact, this company partnered with the eShipping team to help them reach their goals. eShipping reviewed their freight and crafted a solution. eShipping suggested a pooled distribution method between five states, using one load from the warehouse to a specified city, and then distributing the freight from there to the final destination cities.
WHY POOL DISTRIBUTION?
Through Pooled Distribution, the company would be using less trucks. This will reduce their costs, minimize their carbon footprint, and increase their transit speed. Because they partnered with eShipping, they will also have visibility throughout the whole process.
THE RESULTS:
This customer remains incredibly pleased with the outcome of this initiative. It was a simple quarter turn to their robust transportation strategy, but it made a huge impact for their company and in turn, their customers.
Reduced shipment costs
Minimized carbon footprint by 50%
Visibility to increased transit speed