Home & Electronics Delivery Company

Asaph Rapidly Improves EBITA $2.7 Million Through Cross Dock & Transportation Management Solutions

 Client


A leading home and electronics delivery company with over $150 million in sales. Comprised of 60 company agent locations, 1 cross dock warehouse, 110 company owner operators, and 140 company trailers.


Initiative


Contacted by the CFO who was under pressure from the venture capital investor to improve service and reduce costs.  


Situation


They were growing rapidly with year to year growth of over 25%. Costs were rising, quality, poor visibility, and 8-day turnaround time were hurting profitability. They were working out of a new 200,000 sq. ft. warehouse with a cross dock but only using company owned / operated transportation structure thus utilizing only 60% of lanes.  

How We Helped


Asaph reviewed the company’s end to end supply chain and recommended some fundamental changes decrease turnaround time, increase productivity and service, and reduce costs. We worked directly with the CFO and across all levels of management and operations to implement multi-phased supply chain improvements. Our activities included:

  • Analyzing supply chain network and location analysis
  • Establishing a database of providers, costs, and services
  • Leading cross dock and transportation function from “mover” business model to on demand home LTL
  • Designing RFP and establishing fleet and equipment bid contract
  • Implementing customized RFP process for truckload and accessorial bid contract
  • Leading and implementing cross dock turnaround management
  • Providing integrated system solution to increase visibility and productivity

Outcome


  • Improved EBITA $2.7 million
  • Reduced contract transportation costs over 28%
  • Reduced owner operators 35%
  • Achieved 3 day turn around through new operations and cross dock process
  • Established TMS solution providing detailed visibility and operations dashboard of transportation costs and services.

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