Dedicated logistics solution solves retail transportation challenges

• Reliable, dedicated capacity protects growing retailers from supply chain disruptions. 

• Customized logistics solutions can reduce transportation costs while improving service. 
• Scalable transportation partnerships help retailers adapt quickly to changing business needs.

While every company’s leader wants business to boom, growth does come with challenges — like finding a dedicated carrier that can accommodate rapid expansion and changing retail logistics. A discount retail chain based in the Northeast experienced this conundrum after it added over 100 stores in just three years.

When the retailer opened a new distribution center in the Southwest, it needed a transportation provider to service this distribution center and 27 area stores. The retailer called on Schneider to provide a dedicated logistics solution. 

For its operations in the Northeast, the retailer continued working with a small, local transportation provider. However, the retailer soon found that working with a small carrier left it vulnerable to disruptions. After the local carrier experienced an ownership change, the retailer realized how easily business changes could disrupt its supply chain. Plus, the local transportation provider had a small team; when a driver wasn’t available, there wasn’t always a backup driver available to take their place. 

Since the retailer already had contracted dedicated transportation services with Schneider in the Southwest, they knew Schneider had the experience it needed to bolster its shipping operations when they experienced capacity constraints in the Northeast. It asked Schneider to create a temporary fleet that could help fill in the gaps left by its current transportation provider, which was compounded by the surge in holiday demand. 

Schneider provided a quick dedicated solution that prevented disruption in the retailer’s supply chain, engineering a network in less than a week. The team: 

• Priced services for the retailer in only 24 hours
• Sourced drivers in 48 hours
• Assembled a team of five drivers
• Transported 22 loads per week to accommodate a two-month holiday surge

Schneider’s solution delivered quickly, and it also saved the retailer money and hassle. Previously, the retailer used the spot market to fill gaps in its shipping when its local transportation carrier did not have capacity. This practice increased the retailer’s costs. Schneider’s engineering expertise saved the retailer an estimated $200,000 in eight weeks when compared to the higher-priced spot market.

Schneider took the time to understand the retailer's unique transportation requirements and staffed the account with experienced Dedicated drivers equipped to meet them. Because many store locations were in strip malls and other tight delivery environments, Schneider selected drivers with the skills needed to safely navigate challenging docks and access points.

As part of the retailer’s Dedicated team, the same drivers travel the same routes. This practice allows them to become familiar with the stores they are delivering to and to build relationships with the store managers they’re servicing. It also helped the drivers achieve a 97% on-time delivery rate for the retailer’s shipments.

A large network also meant that Schneider could provide nimble, scalable solutions. The number of drivers or trailers could be flexed up or down if the retailer’s shipping volumes changed. For example, when the retailer acquired a warehouse full of products in the Midwest, Schneider engineered a solution to move 350 loads of inventory back to the retailer’s distribution centers.

The flexibility and custom retail logistics solutions that Schneider provided have been able to grow along with the retailer. With Schneider at the wheel, the retailer can rest assured that it’s getting efficient, effective service .