| Case Study:
(Liaoning-USA Corporation) ST/LT Distribution of gloves
Better Service for less money.
In order to compete for business
in the Midwest, Liaoning-USA found they needed to cut the LTL
delivery time to their customers. But, they also had to keep
freight costs low.
For example, if over a two-week period, the company made one
shipment of 12 pallets to Chicago, one shipment of 6 pallets to
Paducah, KY, and two shipments of 3 pallets each to Sioux City
and Fort Dodge, IA, the average cost would be about $130.00 per
pallet. The cost was in their range, but delivers were taking
4-6 days.
By implementing TLC’s "Sort term/Long term" Distribution
program, we were able to move all of Liaoning’s shipments to our
inland distribution center at one time, and allow the company 15
days, to arrange final delivery. If they need another 30 days,
it’s just $8 each for any undelivered pallets.
Their customers got the benefit of NEXT DAY delivery, and
Liaoning was actually able to reduce shipping costs to $117 per
pallet.
In addition, by shipping full containers directly to our service
center, Liaoning was realizing substantial savings by avoiding
drayage and handling and storage at its facility.
Finally, by reducing costs and providing customers with better
service, Liaoning was able to begin developing more business.
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