Page 578 - Board Member Onboardin August 2019
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Freight Management
On-Boarding
Transportation costs are reduced by leveraging third-party logistics providers (3PL’s), distributor shared savings
programs, redistribution services (ReD), and retarget analysis. Each program requires a comprehensive
evaluation of freight cost where CSCS coordinates lane transitions that result in overall savings to Co-op
members.
✓ RFP Analysis
• Leverage third party logistics partners through RFP analysis
• Validate supplier rates against current market conditions
• Transition lanes to reduce freight cost
• DC has the first right of refusal
✓ Distributor Shared Savings
• Collaborate with distributors via bi-monthly calls
• Maximize backhaul and DC third party lanes
• Return savings to Co-op members in the form of a rebate
✓ Redistribution
• Identify slow moving, less than truckload (LTL) shipments
• Redirect to Kinexo in full truckloads (FTL)
• Combine multiple supplier LTL items and ship in FTL to distributors
✓ Retarget Analysis
• Evaluate distributor three-week volume
• Maximize purchase order size
• Increase freight bracket which lowers freight cost
✓ Other Projects
• Bracket exceptions – mid month price changes
• Unloading fee/receiving hours survey
