TQS Solution and Cross Docking reduced courier shipments by 87%

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

SOLUTION:

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

BENEFITS:

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.

TQS cross-docking with TQS SolutionTM implementation has reduced courier shipments to 2780, reducing courier shipments by 87%.