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Transportation Analysis

Transportation Analysis. JJ Cavanaugh Desirae Dunn Josh Powell. What We Are T rying to Accomplish. Overview Total Spend By Mode By OD Pair Carriers in Each M ode Average Shipment S izes Consolidation Opportunities LTL Improvements. Spend by Mode. Most Valuable Carriers.

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Transportation Analysis

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  1. Transportation Analysis JJ Cavanaugh Desirae Dunn Josh Powell

  2. What We Are Trying to Accomplish • Overview • Total Spend • By Mode • By OD Pair • Carriers in Each Mode • Average Shipment Sizes • Consolidation Opportunities • LTL Improvements

  3. Spend by Mode

  4. Most Valuable Carriers

  5. Top Carriers LTL The top 9 out of 41 carriers have approximately 80% of LTL spend These are our A and B Customers

  6. Top Carriers TL Top 5 out of 36 carriers have approximately 80% of TL spend These are our A and B customers

  7. Other Carrier Modes • Small Parcel • Top carrier is responsible for approximately 77% of SP spend • Intermodal • Top carrier is responsible for approximately 63% of IM spend • Air • Top carrier is responsible for approximately 52% of Air spend

  8. Top Carriers by Loads Moved Our top 19 carriers handle 80% of the loads moved This is only 21% of our total carriers This is directly related to most valuable carriers

  9. Top LTL Carriers by Loads Moved Top 10 carriers handle 80% of loads moved

  10. Top TL Carriers by Loads Moved The top 6 carriers handle 80% of loads moved This is only 17% of TL carriers

  11. Spend by Lane • Top 3 OD Pairs • Cranbury, NJ to Charlotte, NC • Approximately $735,000 • Cleveland, OH to Milton, PA • Approximately $546,000 • Macon, GA to Charlotte, NC • Approximately $492,000

  12. Step by Step Analysis Consolidate 3 LTL shipments into 1 TL shipment 3 LTL shipments total cost $15,456.00 -1 TL shipment total cost $ 616.00 -Stoppage Fee for TL (2) $ 100.00 Total Money Saved $14,740.00 3 LTL shipments total cost $15,456.00 -1 TL shipment total cost $ 454.00 -Stoppage Fee for TL (2) $ 100.00 Total Money Saved $14,902.00

  13. Consolidation Opportunities • Cranbury, NJ to Charlotte, NC • Consolidated 152 shipments into 51 shipments • Cleveland, OH to Milton, PA • Consolidated 78 shipments into 27 shipments • Macon, GA to Charlotte, NC • Consolidated 98 shipments into 36 shipments

  14. Carrier Consolidation • Drop carriers carrying less than 1% of freight paid • Give this business to those carrying top 80% • LTL • Will reduce number of carriers from 41 to 14 • TL • Will reduce number of carriers from 36 to 12

  15. Current Spend vs. Consolidated Spend Current spend could be drastically reduced by consolidating LTL shipments into TL shipments

  16. Savings NJ – NC $621K - $644K OH – PA $490K - $503K GA – NC $429.5K

  17. S.W.O.T. Analysis of Consolidation • Strengths • Substantial savings • Manage less carriers • Weaknesses • Higher lead times • Opportunities • Possibly better rates from top carriers • Threats • Top carriers may not run certain routes that smaller carriers do

  18. Summary • LTL shipments are the largest percentages of our costs • Consolidation is key • Reduces costs • Remove unnecessary carriers • Give top carriers a reason to meet your demands • 80/20 rule • More volume = Better service and better rates

  19. Questions

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