“Our freight is ‘ugly’—it’s long, it’s awkward, and it takes up too much space, making it costly to ship,” said Cory Goodwin, director of logistics and accounting at Ghent, in a press release. “Frankly, people aren’t fond of handling it, and it often doesn’t get treated well. Damage used to be our biggest challenge.”
And the problem wasn’t confined to the damage itself. The claims associated with that damage were raising Ghent’s administrative costs, becoming a drag on its bottom line and threatening its growth.
TAILORED LTL SOLUTION TO THE RESCUE
After launching a search for an alternative logistics solution, the company became intrigued by a service offered by third-party logistics specialist ITS Logistics: LTL pool distribution. Like traditional LTL service, LTL pool distribution involves combining multiple shipments into a single truckload for delivery to destinations within the same geographic area. The difference is that pool distribution combines multiple shipments from just one company, while traditional LTL combines shipments from different shippers.
For Ghent’s leaders, the main draw was the prospect of minimizing damage. Pool distribution regionally consolidates shipments for the longest part of the journey, eliminating unnecessary stops and reducing handling. And by minimizing touchpoints, the service cuts down on opportunities for damage to occur, which translates into less time spent on claims.
There were other potential benefits as well. Because ITS Logistics would be able to handle all of Ghent’s shipments, the manufacturer would no longer need to find and deal with multiple carriers. Instead, it would have a single point of contact for all of its logistics needs.
FEWER TOUCHES, FEWER CLAIMS
As for how the new program is working out, the service has more than fulfilled expectations, according to leaders from both companies. By replacing traditional LTL shipping with ITS Logistics’ tailored distribution solution, Ghent has seen an 85% reduction in touchpoints. That, in turn, has led to a significant reduction in damage claims, which have dropped from 5% to 1.3%.
The companies further report that Ghent was able to achieve a seamless transition to the new service and now has a single point of contact for all of its transportation needs.
“Ghent’s number one concern was damage, but [it] also needed a carrier [it] could rely on to transport [its] wide product line,” said Jeremy Davidson, LTL manager at ITS Logistics, in the press release. “The only way to reduce claims, minimize damage, and improve service was to touch the freight less. Our LTL pool distribution was designed to address these exact challenges.”
