Having the right part delivered on time is critical in the dealer industry. Volvo Trucks Canada Dealer Team met this challenge with ThreePL Quality System Inc. Using TQS’ Solution™ System and TQS cross dock facility, the company successfully reduced courier shipments by 87%.
Business Challenge - Traditional Direct Ship:
- Direct ship from Vendors to Dealers
- Multiple shipments using various carriers
- Dealers are responsible for discrepancies in their shipments from Vendors
TQS Solution™, cross-docking and freight auditing application.
Volvo Trucks Canada status before TQS Solution™ implementation:
- Order shipments in 2009 to date - 26900
- 21900 of those shipments, would be shipped by courier
- Waybills generated by courier – 22150, based on quantity per shipment
- Greater than 80% of the freight sent via courier at average cost of $45.13 per package
- In order for vendors to build volumes for LTL shipments, they have to hold dealer order shipments – this could decrease sales volumes.
Solution: Direct Ship Cross-docking
- Using TQS SolutionTM, cross-docking and freight auditing application
- One point of communication for the Dealers via TQS vServe
- Consolidation builds economic freight
- Reduces the freight costs using LTL shipment by factor of 10
- TQS uses a 1 day dock hold time to build freight, then marries
Reduced cost and increased sales volume.
Reduced freight cost - Effectively use TQS Solution™ to manage freight and audit freight costs.
Sales increase - Cross-docking and consolidation reduces freight cost, and that was a great negotiating tool for Volvo Trucks Canada with the vendors to reduce prices and drive sales volume.