Presentation is loading. Please wait.

Presentation is loading. Please wait.

Transportation Analysis JJ Cavanaugh Desirae Dunn Josh Powell 1.

Similar presentations


Presentation on theme: "Transportation Analysis JJ Cavanaugh Desirae Dunn Josh Powell 1."— Presentation transcript:

1 Transportation Analysis JJ Cavanaugh Desirae Dunn Josh Powell 1

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 2 IntroductionOverviewOpportunitiesSummary

3 3 Introduction Overview OpportunitiesSummary

4 Spend by Mode 4 ModeSpend LTL$100,320,342 TL$44,099,975 SP$17,519,928 IM$5,712,837 Air$257,283 Total$168,000,000 IntroductionOverviewOpportunitiesSummary

5 Most Valuable Carriers 5 Carrier Name Freight Paid Carrier Type 1USF HOLLAND INC $ 32,202,459LTL 2 SOUTHEASTERN FREIGHT LINES INC $ 20,484,588LTL 3CROUSE CARTAGE $ 17,013,543TL 4NEW PENN MOTOR EXPRESS $ 13,546,279SP 5 OLD DOMINION FREIGHT LINE INC $ 6,207,804TL 6 U S XPRESS ENTERPRISES INC $ 5,647,193LTL 7USF BESTWAY $ 5,554,183TL 8 AMERICAN FREIGHTWAYS INC $ 4,910,105TL 9WATKINS MOTOR LINES INC $ 4,824,316LTL 10 BULLOCKS EXPRESS TRANS INC $ 3,617,057LTL 11VIKING FREIGHT SYSTEM $ 3,573,925IM 12USF REDDAWAY TRUCK LINE $ 3,441,433LTL 13ESTES EXPRESS LINES INC $ 3,421,973LTL 14 CARTER & SONS FREIGHTWAYS INC $ 3,358,866LTL 15SWEENEY TRANSPORTATION $ 2,949,194LTL 16PRESTON TRUCKING CO $ 2,568,849LTL 17RC TRANSPORT $ 2,552,284LTL IntroductionOverviewOpportunitiesSummary

6 Top Carriers LTL 6 The top 9 out of 41 carriers have approximately 80% of LTL spend These are our A and B Customers IntroductionOverviewOpportunitiesSummary

7 Top Carriers TL 7 Top 5 out of 36 carriers have approximately 80% of TL spend These are our A and B customers IntroductionOverviewOpportunitiesSummary

8 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 IntroductionOverviewOpportunitiesSummary

9 Top Carriers by Loads Moved 9 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 IntroductionOverviewOpportunitiesSummary

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

11 Top TL Carriers by Loads Moved 11 The top 6 carriers handle 80% of loads moved This is only 17% of TL carriers IntroductionOverviewOpportunitiesSummary

12 12 Introduction Opportunities Overview Summary

13 Spend by Lane Top 3 OD Pairs 1.Cranbury, NJ to Charlotte, NC  Approximately $735,000 2.Cleveland, OH to Milton, PA  Approximately $546,000 3.Macon, GA to Charlotte, NC  Approximately $492, IntroductionOverviewOpportunitiesSummary

14 Step by Step Analysis 14 ModeOrigin City Origin State Dest City Dest State Ship Date Weight (Lbs) Spend LTLCLEVELANDOHMILTONPA5/12/1999 4,242$6, LTLCLEVELANDOHMILTONPA5/12/1999 6,606$7, LTLCLEVELANDOHMILTONPA5/13/1999 5,050$1, ModeOrigin City Origin State Dest City Dest State Ship Date Weight (Lbs) Spend TLCLEVELANDOHMILTONPA5/13/199915,898$ TLCLEVELANDOHMILTONPA5/13/199915,898$ LTL shipments total cost $15, TL shipment total cost $ Stoppage Fee for TL (2) $ Total Money Saved $14, LTL shipments total cost $15, TL shipment total cost $ Stoppage Fee for TL (2) $ Total Money Saved $14, Consolidate 3 LTL shipments into 1 TL shipment IntroductionOverviewOpportunitiesSummary

15 Consolidation Opportunities 15 1.Cranbury, NJ to Charlotte, NC  Consolidated 152 shipments into 51 shipments 2.Cleveland, OH to Milton, PA  Consolidated 78 shipments into 27 shipments 3.Macon, GA to Charlotte, NC  Consolidated 98 shipments into 36 shipments IntroductionOverviewOpportunitiesSummary

16 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 IntroductionOverviewOpportunitiesSummary

17 Current Spend vs. Consolidated Spend 17 Current spend could be drastically reduced by consolidating LTL shipments into TL shipments IntroductionOverviewOpportunitiesSummary

18 Savings 18 NJ – NC $621K - $644K OH – PA $490K - $503K GA – NC $429.5K IntroductionOverviewOpportunitiesSummary

19 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 19 IntroductionOverviewOpportunitiesSummary

20 20 Introduction Summary OverviewOpportunities

21 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 21

22 Questions 22


Download ppt "Transportation Analysis JJ Cavanaugh Desirae Dunn Josh Powell 1."

Similar presentations


Ads by Google