Maximizing Deliveries While Driving Down Transportation Costs – Transplace

Maximizing Deliveries While Driving Down Transportation Costs – Transplace

Transplace established an LTL consolidation program to increase load capacity and reduce freight costs for a Canadian hardware wholesaler.

The Challenge

As a leading hardware wholesaler, Orgill Canada Hardlines serves small hardware stores throughout Canada. With the majority of its shipments moving less-than-truckload (LTL), Orgill wanted to maximize its deliveries in order to drive cost out of its transportation network and improve the product delivery cycle. Orgill also needed to maintain a high level of service and meet the seven-day order cycle established for all customers—some of which were located in remote territories of Canada.

The Solution

Orgill partnered with Transplace to establish an LTL consolidation program utilizing regional pool points and a mix of linehaul and LTL carriers. LTL shipments would be consolidated at Orgill’s distribution centers, where the consolidated truckload—which would be comprised of up to 35 LTL shipments—would then be line hauled to a regional carrier’s cross-dock located in one of the major centers across Canada for final delivery.

By working with the best linehaul and LTL carriers across Canada, Transplace was able to utilize the carriers’ strongest capabilities for shipping into the different regions of the country.

As a result, Orgill was able to increase the load capacity of the linehaul trucks by about 30% and reduce freight costs by $1.6M annually. Additionally, establishing pool points helped Orgill meet the seven-day order cycles for all of its customers—even in the most remote territories in Canada.

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