determinesSupplyAppleton
whether there’s product on hand in
inventory. If there is, the order goes
to Ryder for routing. If not,
Appleton fabricates the item, notifying the warehouse when it’s available
for shipping. Ryder’s routing application takes those make-to-order
shipments, optimizes them for shipping, and then tells the warehouse
what items to ship together on what
day. As a result, Appleton’s fleet has
gone from an average of six stops per
load to 12.
In addition to maximizing the
daily fleet routes, Ryder has worked
with Appleton Supply to improve trailer
utilization and cut its transportation cost
per pound. Among other initiatives,
Ryder and Appleton designed special
racks for Appleton’s trailers that can
accommodate 20- to 30-foot metal roofing strips, which are particularly vulnerable to damage during shipping. The racks,
which can be collapsed for backhauls,
have allowed Appleton Supply to get more
weight on each flatbed truck. Since the
racks were put into use, the average load
per truck has risen to 25,000 to 30,000
pounds from 18,000 pounds, an increase
of 40 percent.
Gibraltar and Ryder have also begun
working together to find backhauls for the
fleets, whether the loads come from
Gibraltar sister companies or from outside sources. Ryder has implemented a
global positioning system on all of the
trucks, giving it up-to-the-minute visibility of the vehicles. As a result, it’s now in a
position to seize the opportunity if a load
becomes available.
Costs down, service up
The outsourcing arrangement with Ryder
has allowed Gibraltar to rein in its shipping expenses. In fact, Wagner reports
that the corporation’s freight costs are
now on a par with or lower than they were
with for-hire carriers.
The third party has also improved fleet
performance, enabling Gibraltar to meet
tight delivery windows from exacting
retail customers like Home Depot and
Menards. On top of that, the company has
seen improvements in its order-to-deliv-ery times. The 3PL also provides Gibraltar
with access to real-time transportation
metrics to guide improvement strategies.
Finally, Ryder has helped Gibraltar
increase its backhaul revenues, which has
helped offset rising fuel and transportation costs. Before contracting with the
3PL, Gibraltar wasn’t taking full advantage of backhaul opportunities, Wagner
admits. Ryder, however, has made a big
push in that regard, he says, often going
the extra mile to find a load. In addition
to canvassing other Gibraltar locations to
locate suitable freight, he says, Ryder takes
the added step of using its brokerage arm
to locate outside loads. ;
