CASE STUDY

K & L Freight drastically improves OTP percentage 

Case Study: Contracted Freight Solution

Industry: Packaging

 

Situation

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.

Solution

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.

 

Result

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.

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3813 Illinois Ave.
St. Charles, IL 60174

630.607.1500

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