Landstar System : Capacity Increases Customer Efficiencies

When a leading automotive company realized a certain project in 2015 wasn't a DIY, they called in the professionals at Landstar to reduce costs and increase loads hauled, as well as service levels.

The top automotive company required a new transportation solution to move all the frames for its best-selling pick-up truck from its supplier in Kentucky to assembly plants in Michigan and Missouri.

'Collaborating with the customer is nothing new for our agency. I've always been an advocate to work together, build relationships and rapport and make a difference for the customer. In this case, it was the most effective way to do the move,' said Landstar Agent Jack Faulk.

He and Landstar Agents Daniel Davis, Dawn Greaney White and Buck Shrewsbury, as well as Landstar's corporate personnel, developed a highly efficient logistics system specific to the needs of the customer. Using blended capacity to convert shipments from rail to truck transportation, the solution consisted of Landstar's independent Business Capacity Owners and third-party carriers.

'We moved anywhere from 200 to 300 loads every day, and we did it one truckload at a time. Once we got the routine down, it became a very smooth operation,' said Landstar Agent Buck Shrewsbury.

Landstar carefully identified the flatbed truck capacity providers who would dedicate themselves to the project. Fixed rates were negotiated with the providers, which helped reduce the customer's dependence on volatile spot market pricing and resulted in significant savings.

'Once the training was finished and the organization of the project was altered to fit the needs of the customer, we had one of the most finely tuned plans and support needed to get the job done,' said Daniel Davis of JFA agency. 'When we hit the ground running, Landstar provided key support. I don't know any other transportation company that has the resources and capability to do what we did for this customer.'

Landstar monitored loads and shipments by implementing Landstar Connect, a mobile app that allows truck capacity providers to update load statuses via their smart phones. When the shipments left production yards, they were tracked by GPS, giving the customer an up-to-the-minute update on the loads.

'The scale of this project beats everything we've coordinated on a daily basis. We adapted to the customer and it became a 7 days a week, 24 hours a day operation. We set the bar for what can happen and what we are willing to do to help the customer succeed,' said Landstar Agent Dawn Greaney White.

Within ten days, as the 3PL for the project, Landstar created a new work flow, established the production and transport process and moved approximately 200 to 300 loads per day while saving the customer a substantial amount of time and expense in the process. Project done!

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