Supply Chain Solution Reduces Freight Costs and Maximizes Efficiencies for Major Foot Care Provider
Transportation management has evolved far beyond moving freight from point A to point B by way of truckload, less-than-truckload (LTL), parcel, and intermodal.
Supply Chain Challenges
Prior to partnering with ODW, the client shipped orders as they were received—LTL shipments, each one between 3–4 pallets. This “order in, order out” routing was inefficient and costly.
Given the current landscape of their supply chain, they decided to look at new 3PL partners in order to find solutions that help them reimagine a more efficient and cost-saving supply chain solution.
ODW'S Five-Step Process To Reduce Freight Costs
For one major foot care provider, they needed a third party logistics (3PL) provider to help them:
1. Discover: A Transportation Network Study was conducted to identify inefficiencies in shipping strategies, modes, lanes and carrier utilization.
2. Rate Negotiation: ODW negotiated new LTL rates and leveraged carriers to meet their specific needs.
3. Freight Optimization: ODW built a freight optimization framework—consolidating their orders into multi-stop full truckload orders.
4. Pool Distribution: ODW implemented a pool distribution solution and multi-stop truckloads that controlled costs and reduced freight touches.
5. Consolidation: Orders were leveraged across ODW’s network, grouped with like shipments, and consolidated into truckload deliveries.
The Result: A Supply Chain Solution That Maximizes Efficiencies
Decrease in LTL Costs
- ODW’s freight optimization solution brought the client’s cost per pound down from $0.46 cents to $0.39 cents.
1.2-Day Increase in Speed-to-Market
- ODW’s dynamic and realtime routing process leverages the TMS technology to eliminate wasteful time in supply chain, leading to faster deliveries.
$430,000 Chargeback Savings
- ODW's transparent visibility of bread crumb tracking and paperwork trail.