K & L Freight drastically improves OTP percentage
Case Study: Contracted Freight Solution
To minimize the chances of losing a large customer due to poor results from its incumbent freight hauler, an industry-leading packaging company for the food & beverage market reached out to K & L Freight Management for help. The company had a lofty goal: to improve its on-time service performance (OTP) for a time-sensitive customer lane from 83 percent to greater than 90 percent—while locking in competitive shipping rates over a 12-month period.
As an experienced freight brokerage, known for delivering a combination of cost-effective contracted freight and high service levels, K & L was up for the task.
By collaborating with the company’s Director of Transportation, K & L was able to fully understand and assess all of the lane’s risk elements. As a result, a service-centric program anchored by K & L’s Committed Capacity contract freight solution was configured and executed with precision.
K & L’s program guaranteed service improvements by no less than 10 percent, as well as a 12-month commitment to the lane.
Key program features included:
• Forecast-driven scheduling: K & L worked with the company’s transportation department to build a precise pickup and delivery schedule based on forecasts provided one week in advance.
• Strategic truck positioning: Each truck positioned at the shipper by K & L had a clean hours of service (HOS) clock, eliminating the risk that a driver would run out of drive time.
• At-the-ready recovery options: To quickly resolve truck or production problems that inevitably occur,
K & L secured backup options with well-positioned carrier partners.
The partnership was a success. K & L delivered on its goals, exceeding the target by improving the lane’s OTP by 12 percent. In the process, K & L erased the packaging company’s concern that its important customer might move its business elsewhere.
Due to the overwhelmingly positive results, the packaging company awarded K & L 100 percent of the shipping for that particular customer moving forward.