Business Issue Addressed
How logistics groups can reduce their carriers’ CO2 emissions and control their costs in the process. How going Green can save Green.
In 2005, while analyzing the load statistics with some of their key core truckload carriers, our client (a multi-national $30Billion manufacturer and distributor) noticed that their deadhead mileage statistics for their key carriers appeared to be excessive. Upon closer scrutiny, their logistics team discovered that often times, inbound trucks that were delivering goods into their facilities had different dispatchers than the trucks that were handling their outbound loads. Because most of their key carriers had decentralized dispatch operations that were assigned by geographical regions, these dispatchers weren’t even aware of what was happening. Our client found this lack of communication within the carrier’s dispatch process to be common with most of their key carriers, so they realized they needed to come up with a way to pro- actively let their carriers know when re-load opportunities existed. By doing so, they saw they could create a “win-win” scenario; their core carriers could increase their capacity utilization, our client could continue to drive more business to their carriers, they could save lots of money by reducing their deadhead mile charges, and also drastically reduce the number of miles traveled, and CO2 produced, by their carriers in the process.
Solution: BestTransport’s Connected Capacity Module
Later in 2005, working closely with our client (who had been using BestTransport’s on-demand TMS since 2001), BestTransport developed its Connected Capacity module, which gave them the ability to search for available capacity in their carrier base in real-time. This was accomplished by accepting an automated feed of capacity location information from carriers so that the originating loads could be matched up with all their carrier’s available trucks that had just delivered loads within a user-defined radius from that origin – regardless of the shipper. At the same time, this module provided their participating carriers with visibility into all available loads within their region of potential pick-up.
- Increased carrier network efficiency because demand and capacity are optimized in real-time
- Improved safety through the reduction of truck traffic
- Reduction in the number of core carriers needed under contract
- Increased capacity utilization for the core carriers through the presence of re-load opportunities
- Big $$ savings due to the reduction of trucks needed to move their freight and number of miles they had to travel to get to the loads
- Green Effect: Elimination of ~ 82 tons of carbon dioxide emissions, due to elimination of 1.6 million miles traveled