How an asset-based transportation provider improved retail shipping capacity and on-time delivery

• Shippers struggling with inconsistent capacity and service reliability can improve performance by partnering with asset-based providers that offer greater control over equipment and drivers.
• Transitioning from a transactional, broker-heavy model to an asset-based solution helps stabilize capacity and reduce exposure to market volatility.
• Increased visibility and operational control enable faster issue resolution and more consistent service, improving overall supply chain performance.
• Shippers can strengthen long-term capacity strategies by prioritizing provider partnerships that offer dedicated assets, scalability and accountability, not just short-term cost savings.

A national retail chain offering quality home and apparel products at discounted prices operates 544 stores in 44 states and Puerto Rico. It also offers a variety of designer and name brand merchandise at reduced prices, in addition to staging several widespread promotions each year.

Capacity needs surge during these promotions and throughout the retailer’s peak season from August to December. In addition to promotional surges, it sought a transportation provider that could move product from main distribution centers to department stores all over the country in a timely and efficient manner year-round.

For more than 10 years, the retail chain worked with non-asset-based providers whose business model involved sourcing transportation companies for deliveries and charging a brokerage fee.

As a result, the retailer missed out on having a valuable, direct relationship with the carriers transporting its products from main distribution centers to regional distribution centers and, finally, to retail stores. Since this retailer was not the beneficial cargo owner, it could not control the movement of freight from distribution centers to pool providers, where shipments for final mile delivery to stores were consolidated.

To inform a carrier about a capacity surge, for example, the retailer had to contact the non-asset-based providers, who in turn told the carriers, who in turn told the pool providers. This lack of direct communication and inefficient dispatch process resulted in inconsistent transit times that hurt the company’s ability to stock its stores, especially during peak season and special promotions.

The retailer decided to switch to an asset-based provider model that could not only communicate more directly but also potentially reduce overall costs by streamlining the process and avoiding stock-outs.

Though the retailer evaluated many potential carriers, a commitment to building direct customer relationships and a huge capacity base with multimode capability made Schneider stand out. 

Schneider provided a solution that included both intermodal and truckload services.

Most importantly, Schneider delivers consistent, direct communication. Not only does a real person answer the phone when the retailer calls Schneider, but Schneider also provides the retail chain with a dedicated customer service representative and account manager. This team knows the ins and outs of the customer’s business and is always on hand to work through increased capacity needs as they arise. It also provides the retail chain with more control and consistency in the transportation process.

The retailer was especially pleased by the fact that an asset-based solution from Schneider offers a price based on an initial capacity commitment of several thousand loads, with no brokerage fees, reducing its transportation costs.

The Schneider team delivered impressive results during its first year on the job, including:

• 100% coverage on the 16 original lanes awarded
• 3,635 orders delivered
• 96% on-time pick-up rate 
• 98% on-time delivery service
• Shipper turn time average of 28 minutes
• Successful management of spikes of up to 30% in volume during nationwide promotions and peak season

The retail chain is thrilled with Schneider’s ability to go above and beyond its expectations. In fact, it was so impressed with Schneider’s performance, price and service that it awarded the company additional lanes.

Though communication is often cited as the key to personal relationships, the Schneider team’s work with this retailer has proven that communication is also the key to a healthy, prosperous transportation relationship.