Tuesday, September 20, 2011

Less Than Truck Load Haulage Customers Offered New Freight Deal

Schneider Says IDS is a New Look at an Old Product
Shipping News Feature

US – Everyone involved in freight and logistics understands that economy of scale is one of the most effective ways to keep shipping costs down. Where road haulage is concerned full load trailer rates can simply be negotiated to ensure the optimum price for a reliable service but consolidating cargo into a groupage load is where the skill of a quality less than truckload (LTL) haulier lies.

Now Schneider Logistics Inc., part of the Schneider National enterprise, has unveiled a service offering for shippers with reoccurring LTL moves. Integrated Delivery Services (IDS) utilizes Schneider’s Supply Chain management technology, cross-docking abilities and decades of dedicated trucking experience to provide what they describe as a new, cost-effective supply chain solution for shippers willing to share the ride. Todd Jadin, vice president of IDS for Schneider Logistics explains the company’s thinking:

“Schneider saw an opportunity to provide a smarter solution for shippers moving LTL freight in the same geographic markets. Integrated Delivery Services is especially attractive to shippers in the automotive aftermarket, heavy truck and equipment manufacturers, and specialty retailers. Companies within each of these industries run common routes and have similar distribution locations and dispatch schedules; by pooling their deliveries, we provide tremendous efficiencies and cost savings.”

While Jadin acknowledges that the thought of competitors sharing supply chains is foreign at first, the ongoing sluggish state of the economy, erratic cost of fuel and increasing cost of finding drivers require creative thinking to keep today’s manufacturers and retailers competitive and in business. To test the water Schneider piloted Integrated Delivery Services in Denver with shippers of competing brands who had similar delivery windows, routes, shuttles and cross-dock locations. In an innovative shared-channel approach, Schneider merged freight and created customized routes based on multiple shippers’ cross-docking, dedicated delivery, pool distribution, reverse logistics and LTL consolidation needs.

Now around twenty customers are trialling the service and Schneider claim cost savings of 7 to 20 percent are achievable based on network location. The service suits customers who move regular LTL shipments to set destinations and the service is currently available in eight networks across the United States: Portland, Oregon; Sacramento and Los Angeles, California; Denver, Colorado; Houston, Texas; Lenexa, Kansas; Jackson, Mississippi; Winchester, Virginia, and Memphis, Tennessee with the Midwest and Dallas/Fort Worth, Texas also targeted for expansion.

Photo: One of Schneider’s country wide depots.