Insight on Business

September 2012

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INSIGHT ON SHIPPING & L OGI S TIC S By Amy Spreeman Sharing the ride Local shipping & logistics companies use technology to innovate for clients N companies on the road. All those trucks running common routes, similar distribution locations and dispatch schedules might look like a lot of traffic, but several local companies recognize that competition on the road equals opportunity to get innovative and solve its industry' ext time you're driving along Highway 41 in northeast Wisconsin, pay attention to the multitude of trucking logistics, supply chain costs are now the number one expense of doing business. Schneider Logistics, Inc., a subsidiary of Schneider National, Inc., is one of several local shipping and logistics organizations getting creative to successfully navigate its customers' biggest roadblocks. For example, Schneider's Integrated When it comes to shipping and s biggest challenge. Companies such as RGL Holdings, Schneider Logistics and Kimberly-Clark are using technology to develop ways to save money on expensive supply chain costs, improving service to their customers along the way. Delivery Service (IDS) is a shared- channel approach where competitors who move freight in the same geographic markets are actually sharing supply chains. Schneider launched IDS in 2010 Know list for bringing capacity, service, speed and cost savings to new markets. Merging its freight, the company customized its routes based on multiple shippers' cross-docking, dedicated delivery, pool distribution, reverse logistics and recurring less-than- truckload (LTL) consolidation needs. from its nine cross-dock locations across the nation, and it was recently recognized by Supply & Demand Chain Executive magazine' s annual Pros to 36 | INSIGHT • September 2012 Earlier this year, Schneider took a hard look at boosting its capabilities in integrated deliveries, starting with its aſter-market auto parts model for customers such as GM, Ford and Chrysler dealerships. How could Schneider feed its customers' increasing appetite for shipping smaller quantities, more frequently and much faster? "We thought, 'Well, we already have But the innovation didn't stop there. the ability to provide very effective next-day delivery for our established auto parts customers, why not leverage that capability across multiple industries?' So we're now expanding into retail, chemical and equipment manufacturing, president and general manager of Integrated Delivery Services (IDS). Dozens of customers are already " says John Vesco, vice reaping the benefits of Schneider's IDS approach, which includes state-of-the- art scanning technology that scans and tracks any item from point of pickup to outbound delivery. "We worked with a customer who was amazed that this system was able to remove 20 hours – an entire day – out of delivery turnaround. These efficiencies allow us to pool our deliveries and offer tremendous efficiencies and cost savings," Vesco says. "We're building on a long-term legacy, expanding into other industries with multiple carriers, all managed under our umbrella." Schneider's Integrated Delivery Service currently operates in eight networks across the United States, and markets targeted for expansion include the Midwest and Dallas/Fort Worth, Texas. www. insightonbusiness.com COURTESY OF RGL HOLDINGS

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