Use facility insights to improve performance and lower costs

The following case study originally appeared in Convoy’s 2022 Freight Insights Report.

The client

Fortune 500 manufacturer

The challenge:

At one of its biggest facilities, a Fortune 500 manufacturer saw high detention costs because of longer-than-usual dwell times on drop-and-hook loads — which was curious considering drop loads typically have shorter dwell times. Carriers rated this facility 3.5, putting it in the bottom 5%, and their feedback hinted at broader scheduling and operational problems.

The process:

Our shipper insights and freight transformation teams compared drivers’ actual transit times to the facility’s appointment times, which were set by the manufacturer’s 3PL, and made a surprising realization. Drivers were arriving so early for their appointment times that they were waiting hours to unload.

For instance, a driver would pick up a shipment at 9 a.m. and arrive at the manufacturer’s facility around 12:30 p.m. — but the delivery appointment time wasn’t until 6 p.m. The driver held onto the trailer for close to six hours longer than necessary.

In these cases, drivers don’t get the most out of their full 11 hours of service, which hurts their productivity and reduces their earnings. The result: negative facility ratings and reviews, higher truck costs, and higher accessorial costs.

The outcome:

Leveraging detailed facility and shipment data, Convoy provided lane-by-lane transit recommendations that the manufacturer’s 3PL now executes. The manufacturer also lengthened the facility’s hours.

Key Results:

• 53% reduction in excess transit time
• 60% reduction in pickup dwell time
• 22% reduction in truck costs
• 70% reduction in detention costs
• 4.4 facility rating (above average, up from 3.5)

Interested in learning more about how Convoy’s data can improve the health of your supply chain?

The 2022 Freight Insights Report covers a step-by-step guide to analyzing your own facility insights in our online shipper platform.

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