Finding Capacity and Savings In a Dynamic Market – Hub Group
Hub Group generated savings and efficiency for a leading national retailer.
A leading national retailer was dealing with an unexpectedly challenging capacity environment, influenced by rising costs and a looming peak season. Complicating the issue, a high frequency of multi-stops had caused productivity losses for underlying carriers. The retailer needed to ensure its supply chain sustained product flow to serve its customer base while maintaining a consistent driver pool. With drayage costs accelerating, there was a pressing need to optimize network practices and reduce costs. In the current environment however, this seemed like an exceptional challenge.
Hub Group identified the factors escalating costs at a major junction. Leveraging their understanding of the retailer’s supply chain, analysis revealed an opportunity for freight consolidation in southern California, strategically positioned between critical vendor pickups and their DC network.
A solution was devised that established a short haul LTL network in conjunction with cross-docking at key locations, and a long haul asset strategy that improved efficiency, supplied capacity, drove service enhancement and reduced costs. Ultimately, multi-stops were made more efficient, resulting in enhanced network performance.