Challenge: A large U.S. food producer was incurring sizable on-time, in-full delivery fines due to late deliveries to a large retailer. The producer’s objective was to contract a dedicated carrier that could provide 97% on-time delivery out of its highest-volume distribution center — moving its overall on-time delivery metric into acceptable range and avoiding costly penalties.
Solution: Red Classic designed a dedicated solution with regional and long-haul components for shipping more than 100 loads per week. Success metrics included on-time delivery, deadhead percentage and number of loads hauled per week.
Results: After implementing Red Classic’s solution, the producer achieved significant savings in OTIF fines, and has since expanded freight volume through the project by 28%. In addition to providing on-time delivery for outbound loads, Red Classic also carried backhauls out of the customer’s multiple manufacturing facilities back into the distribution center where the fleet was based, providing further cost savings. The solution, now in its second year, resolved a significant and costly challenge in the customer’s supply chain.