Automotive Parts Distribution


Customer Profile

  • On-site switching at 3 Parts Distribution facilities
  • Selected by Lead Logistics Provider (LLP)
  • Largest Facility – 2 Shifts with 19 total drivers
  • Average switches per hour (SPH) with prior provider was at 3.98 at start-up March 2007.
  • Committed to annual cost savings targets for each site at the time of RFQ.

Solutions

  • Analyzed driver and dock productivity by time of day to identify over capacity
  • Daily productivity scorecards
  • Achieved Year 3 goal of 14 drivers ahead of schedule in 2008.
CURRENT PROPOSED CHANGE IN HOURS
SWITCHER 1 4:00 15:00 11.00 4:00 15:00 0.00 11.00
SWITCHER 2 5:00 15:00 10.00 5:00 15:00 0.00 10.00
SWITCHER 3 5:00 14:30 9.50 5:00 14:30 0.00 9.50
SWITCHER 4 5:30 14:30 9.00 5:30 17:00 2.50 11.50
SWITCHER 5 5:30 14:30 9.00 Redeploy Driver -9.00 0.00
SWITCHER 6 6:00 14:30 8.50 6:00 14:30 0.00 8.50
SWITCHER 7 6:15 15:30 9.25 6:15 15:30 0.00 9.25
SWITCHER 8 15:00 4:00 11.00 15:00 4:00 0.00 11.00
SWITCHER 9 15:15 1:30 10.25 15:15 1:30 0.00 10.25
SWITCHER 10 15:45 3:30 11.75 15:45 0:15 -3.25 8:50
SWITCHER 11 15:45 3:30 11.75 15:45 3:30 0.00 11.75
SWITCHER 12 15:45 1:30 9.75 15:45 1:30 0.00 9.75
SWITCHER 13 15:45 0:15 8.50 15:45 0:00 0.00 8.50
SWITCHER 14 15:45 0:15 8.50 15:45 0:15 0.00 8.50
SWITCHER 15 15:45 0:30 8.75 15:45 0:30 0.00 8.75
146.50 136.75
TOTAL HOURS 146.5 TOTAL HOURS 136.75
Less lunch/pre/post/fuel 14.25 Less 13.50
BILLABLE 132.25 BILLABLE 123.25
Straight 120 $6, 853.20 Straight 112 $6, 676.32
Overtime 12.25 $699.60 Overtime 11.25 $670.61
Daily Cost $7, 552.80 Daily Cost $7, 346.93
Weekly Cost $37, 763.99 Weekly Cost $36, 734.66
Weekly Savings    $1, 029.33
Annual Savings    $53, 524.90

Value Delivered to the Customer

Arrow Up 3.98 SPH to 5.25 SPH
Arrow Down Driver Count: 19 Drivers to 14 Drivers
Arrow Up Savings to Customer: $237, 836