"Schneider saw an opportunity to provide a smarter solution for shippers moving LTL freight in the same geographic markets," explained Todd Jadin, vice president of IDS for Schneider Logistics. "Integrated Delivery Services is especially attractive to shippers in the automotive aftermarket, heavy truck and equipment manufacturers, and specialty retailers. Companies within each of these industries run common routes and have similar distribution locations and dispatch schedules; by pooling their deliveries, we provide tremendous efficiencies and cost savings."
Schneider piloted Integrated Delivery Services in Denver with shippers of competing brands who had similar delivery windows, routes, shuttles and cross-dock locations. In an innovative shared-channel approach, Schneider merged freight and created customized routes based on multiple shippers' cross-docking, dedicated delivery, pool distribution, reverse logistics and LTL consolidation needs.
Nearly 20 customers are already reaping the benefits of Schneider's Integrated Delivery Services, which include increased visibility to the product with state-of-the-art scanning technology, access to Schneider's high level of service from its Supply Chain Management and Dedicated offerings, and cost savings of 7 to 20 percent based on network location.
While Jadin acknowledges that the thought of competitors sharing supply chains is foreign at first, the ongoing sluggish state of the economy, erratic cost of fuel and increasing cost of finding drivers require creative thinking to keep today's manufacturers and retailers competitive and in business. "Shippers are telling us that supply chain costs are now their number one cost of doing business," noted Jadin. "That reality brings with it the need to be strategic and creative in how we help our customers succeed. Integrated Delivery Service delivers on both fronts."
Schneider's Integrated Delivery Service currently operates in eight networks across the United States: Portland, Ore.; Sacramento, Calif.; Los Angeles, Calif.; Denver, Colo.; Houston, Texas; Lenexa, Kan.; Jackson, Miss.; Winchester, Va., and Memphis, Tenn. Markets targeted for expansion include the Midwest and Dallas/Fort Worth, Texas.
"Integrated Delivery Service works best for shippers who move an LTL product on a consistent basis," added Jadin. "This new service excels with daily deliveries, as over 99 percent of our stops are made within 24 hours; however, we're also successfully moving two to three loads per week for customers. Integrated Delivery Service provides Schneider the ability to give its customers more visibility, options and cost savings for LTL shipments."