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The Southeast's Leader in Dedicated and Regional Transportation Services for over 40 Years.

The best way to understand just how Brown Trucking improves our customers’ transportation and logistics operations and significantly improves their cost structures is to see some examples.  The three case studies below should give you some idea of how we can help your company become more competitive and profitable.

 

CASE STUDY 1, Outsourcing a Private Fleet


A large manufacturer of paper and corrugated containers was growing increasingly concerned about the costs associated with running its private fleet. Although the fleet looked cost-effective on the surface, management realized that many categories of expenses, like insurance, human resources, accounting and back-office support, were not being fully allocated to the transportation operation, if at all. The company was also facing a decision to replace its aging truck fleet that would require a sizeable capital investment.

Brown Trucking worked with the customer to identify and quantify the functions and costs of the private fleet that could be eliminated through outsourcing. The company then compared Brown Trucking’s proposal to the private fleet costs, where outsourcing to Brown Trucking would immediately save the company 15-20% in operating costs, and reduced capital expenditures for transportation to zero. Then Brown Trucking worked with the company to develop and implement a transition plan that maintained 100% service to its customers and allowed the company to exit the trucking business for good in a reasonably short time.

 

CASE STUDY 2, All Variable Cost Dedicated Operation


A Fortune 500 integrated paper and packaging company had established dedicated transportation operations at most of its plants. They were experiencing significantly higher costs than projections,  which were based on the trucking company bids that they had negotiated.  They were also having service problems from dedicated carriers at several locations where daily shipment volumes varied and their growth had made the fixed number of tractors and trailers inadequate to meet their needs.  The shortfall had to be covered with other trucking companies at a higher cost than the dedicated carriers.

Brown Trucking identified the culprit as the traditional dedicated “fixed plus variable” pricing methodology used by the customer. The bid process specified a number of tractors and trailers for each location, and the customer paid a fixed monthly charge for the equipment and support staffing, plus a charge for all miles run by the trucks.  Brown educated the customer on the benefits of “all variable cost” pricing, where Brown committed to service 100% of the dedicated freight, regardless of how many daily and monthly shipments were required, and the customer had no overhead charge - just paying for the services that they actually used.
By using Brown Trucking to implement the “all variable cost” pricing model, service immediately improved, and the stress levels at the plants were reduced. The actual costs for transportation resulted in savings at every location.

 

CASE STUDY 3, Using Information to Make Your Business More Profitable

An existing customer had been receiving daily trailer pool reports at its locations serviced by Brown Trucking.  They had become concerned by the growing number of excess trailers in those pools, along with the accompanying increased cost. Working with Brown’s information technology, Brown and the customer committed to identify excess trailer pools and reduce the pools as much as possible. After 4 months, Brown had assisted the customer in eliminating over 300 trailers from the pools, saving the customer nearly $1 million per year.

The same customer has also used Brown’s daily on-time delivery detailed reporting, and our trip-by-trip cost analysis to assist their sales staff in attracting new customers and to help them more accurately price the delivery component of their product and assure consistent profitability.

Using Brown Trucking’s ability to customize reporting and analysis, Brown worked with the same customer and custom designed Brown’s electronic invoicing to match the customer’s general ledger, thus improving their internal reporting and reducing the hours that were previously spent for their staff to perform that task manually.