Blue Star Office Supply Company Solutions
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Transcript of Blue Star Office Supply Company Solutions
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BLUESTAR OFFICE SUPPLY: COMPANY
SOLUTIONSGrant Colgan, Anna Lee Zealy, Chenlin Feng
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BlueStar Office Supply:Break Down
Annual Revenue: $950 Million Product Area: Office Supplies Customers: Retailers & Commercial
Accounts Customer Area: U.S. & Canada
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Objectives
1- Assess Transportation & Spending 2- Cost/Saving Analysis 3- Customer Service Analysis 4- Risk Assessment 5- Solutions
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Assess Transportation & Spending
Objective 1:
Annual Spending: $248,740,738 Key LTL Shipping Metrics:
○ Weight○ Distance ○ Frequency
Top LTL Origin-Destination Pairs:
Origin City Origin State Dest City Dest State # of LTL Shipments PAINESVILLE OH HAMILTON OH 252PAINESVILLE OH MILTON PA 210RIVERSIDE MO OMAHA NE 176CHICOPEE MA MILFORD MA 173ATLANTA GA CHARLOTTE NC 165
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Assess Transportation & SpendingObjective 1:
Top 5 TL OD Pairs Service: 43 Carriers
Average Size & Length of Haul By Mode:
Mode Avg. Size (lbs) Avg. Distance (mi) AIR 1,363 614 LTL 5,947 472 SP 132 1,047 TL 12,912 433
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Assess Transportation & Spending
Objective 1:
Top TL Carriers:
Carrier Name # of TL ShipmentsCROUSE CARTAGE 2,834OLD DOMINION FREIGHT LINE INC 1,327WICHITA-SOUTHEAST KANSAS TRANS 852CRETE CARRIER CORP 613A DUIE PYLE INC 559
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Assess Transportation & Spending
Objective 1:
LTL Consolidation Criteria:○ Same Day Shipments○ Consolidated Under 40,000 lbs.
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Cost/Savings AnalysisObjective 2:
Hard Data Facts:Months: 4Transactions: 43,001OD Pairs: 3,301 (after data corrections)Data Freight Paid: $82,913,580# of Carriers: 88Modes: AIR, LTL,TL, & SP
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Cost/Savings AnalysisObjective 2:
Top Origin-Destination Pair Selection Criteria:50 Highest Freight PaidShipment Frequency >100
Overall: 1.5% of OD Pairs23% of Freight Paid38% of Weight Shipped18% of Transactions
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Cost/Savings Analysis- PHASE 1- Modal Shift
Objective 2:
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Cost/Savings Analysis- PHASE 2- Rule of Thumb
Objective 2:
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Cost/Savings Analysis- PHASE 3- Consolidation
Objective 2:
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Cost/Savings Analysis- A Look at AIR
Objective 2:
# of Air Shipments SAVINGS % SAVINGS
65 $255,790 68%
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000Sum of
Freight Paid-BEFORE, $324,168
Sum of Freight Paid-
AFTER, $68,378
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Cost/Savings Analysis- Percent Savings
Objective 2:
AIR: $255,790 = 68% Savings PHASE 1: $9,204,306 = 48% Savings PHASE 2: $6,291,655 = 25% Savings PHASE 3: $7,721,041 = 32% Savings ANNUAL HARD COST SAVINGS:
$23,163,124 = 9% Savings
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Customer Service AnalysisObjective 3:
Flexibility Reliability Accessibility Consistency
What does this EQUAL?
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Customer Service AnalysisObjective 3:
Reduced Variability
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Customer Service AnalysisObjective 3:
CARRIER NAME CARRIER TYPE PERFECT METRICUSF HOLLAND INC LTL 66%SOUTHEASTERN FREIGHT LINES INC LTL 69%N & M TRANSFER CO INC LTL 69%ESTES EXPRESS LINES INC LTL 68%VIKING FREIGHT SYSTEM LTL 69%USF REDDAWAY TRUCK LINE LTL 71%CROUSE CARTAGE TL 93%OLD DOMINION FREIGHT LINE INC TL 90%WICHITA-SOUTHEAST KANSAS TRANS TL 73%ROEHL TRANSPORT INC TL 69%JB HUNT TRANSPORT INC TL 74%SAIA MOTOR FREIGHT LINE INC TL 90%
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Risk AssessmentObjective 4:
Lost, stolen, or damaged goods Traffic issues Billing accuracy Reliability Customer service
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SolutionsObjective 5:
1-10 11-20 21-30 31-40 41-500%
10%
20%
30%
40%
50%
60%49%
55%
46%42%
47%
46%
37%
21%16%
7%
Rule of Thumb ComparisonPHASE 1 & 2
PHASE 1 PHASE 2
OD PAIR GROUPS
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SolutionsObjective 5:
1-5 6-10 11-15 16-20 21-250%
10%
20%
30%
40%
50%
60%
70%
43%49%
41%32%
20%
47%53%
57%53%
40%
Consolidation ComparisonPHASE 2 & 3
PHASE 2 PHASE 3
OD PAIR GROUPS
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Plan of ActionObjective 5:
Modal Shift: Based on LTL to TL Competitive Rates (10,000 lbs.)
Same Day Consolidation: Savings + Ultimate Flexibility
Create Reliable Relations: Contract Trucking for TL and LTL
Eliminate AIR: Except over water routes
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Questions?