Auto Supplier Turns to Hub Group for Strategic Overhaul
Encompassing drayage, transload, and expedited OTR solutions, Hub Group’s comprehensive capabilities helped a leading auto supplier gain back control over its import network and key relationships.
A leading supplier in the global automotive industry faced a concerning scenario that could dramatically impact its business. The company utilized three well-known freight forwarders in the Los Angeles market, but all three faced considerable challenges including tight capacity at the ports, severe port congestion, and numerous communication breakdowns. And to make matters worse, all of these issues compromised the company’s rapport with its OEM line. These serious conditions prompted the company to turn to Hub Group—and fortunately, it was just in the nick of time.
After a network analysis, Hub Group began to execute a strategic solution in just 48 hours after being awarded the opportunity. By deploying our asset-backed network and deep chassis pool, Hub Group implemented a drayage solution that involved a two-shift operation—giving the customer access to a fleet of dedicated drivers and pre-procured capacity to support customer surges. A critical leg to an end-to-end solution, this set the cadence and positioning of our transload and over-the-road (OTR) solution to be successful.
Next, Hub Group flexed transloading capacity in the market to provide a quick alternative to shipping intact containers to end locations. This program not only avoided the excess cost of holding onto a steamship container, but it also maximized cubage by combining up to two 40-ft. containers into a single 53-ft. trailer while still hitting on-time expectations. This helped the customer maximize freight-per-truck for inbound orders while avoiding costly capacity going deep in its network.
Lastly, realizing this one point of contact was an opportunity to enhance the customer’s visibility and communication, Hub Group’s dedicated Account Management team replaced multiple communication channels with our streamlined, proprietary logistics technology, Hub Connect.
With this tool, the customer could monitor capacity commitments from any carrier with access to essential shipping updates and a standardized freight payment method. This eliminated chaos and moved to proactive reporting, problem-solving, and planning. Our technology also enhanced visibility to give the customer confidence in Hub Group’s control over its supply chain.
In the face of overwhelming port challenges, Hub Group delivered comprehensive, strategic options—helping the customer gain back control over its import network and key relationships. Our International Drayage solutions replaced the previous framework with drayage, transload, and expedited outbound OTR solutions, including a commitment to more than 100 containers a month with 24/7 communication to the company’s team. This overhaul revived the company’s rapport with its OEM line and positioned its supply chain for sustainable success.
In addition, Hub Group positioned the company for long-term growth with optimized import processes including international ocean moves, inbound diversions, and international inland drayage growth with containers delivering to the customer’s DCs. Finally, Hub Group was also nominated as the single-source provider to deliver drayage, transload, and OTR capabilities for all of the U.S. and Canadian gateways—offering a uniform service level in each corridor.