Provide examples.

Published by Jeannie R. Ferrell

Dec 8, 2022


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Need assistance on Questions 3 and 5.
1.Who are the top 5 TL carriers (in terms of total spent)? (5 points)
In terms of total spent the top five tl carriers are: CRSE charged us $3,514,785.61 for their services. ODFL charged us $1,772,151, WSKT charged $1,296,337, CRCR required us to pay $932,470.72, and BSWS sent a bill for $819,439.80. These were the 5 largest of the 30 total TL shippers, they contributed to approximately 58.5% of the total shipping costs for our TL suppliers.
(this could be a place to try to streamline our shipping carriers from 30 to lower and try to get better bulk pricing)
2.What are the top 5 origin-destination pairs for TL shipments ? Use both total spent and frequency of shipments as two different metrics. Are the two lists the same? Why or why not? (15 points)
The top 5 origin-destination pairs in total spent are, Ft Wayne, Painesville, Atlanta, Hamilton, and El Ranchero, While the top 5 origin destination pairs for number of shipments are Ft Wayne, Atlanta, Painesville, Cansbury, and Riverside. Below are tables with data that shows that the size and value of the shipments themselves also have an impact on total cost and not just the number of trips as they may be shipping different things specified within their contract. The large hubs are often the same as most of the business comes from the central places while the last two vary as they may be consolidating plants in Riverside and Cansbury putting together higher value shipments to send to places such as Hamilton and Rancho Cucamonga which may have the plants and need a variety of materials shipped to them based on production numbers hence the higher value.
Top 5 Origin-Destination Total Cost Top 5 Origin-Destination Total Shipment Number
Ft. Wayne: $2,575,854.34 Ft Wayne: 1,689 trips
Atlanta: $2,485,537 Atlanta: 1,051 trips
Painesville: $1,599,626.26 Painesville: 1,174 trips
Hamilton: $1,105,419.89 Cansbury: 612 trips
Rancho Cucamonga: $889,903.27 Riverside: 609 trips
3.How many TL carriers currently serve each of the top 5 TL origin-destination pairs? (You may use any of the metrics, e.g. total spent or frequency of shipments) Do you have any suggestions for risk mitigation based on the number of carriers currently serving the top TL origin-destination pairs? (15 points)
4.What is the average shipment size and length of haul for each carrier type? Based on these averages, do you have any general suggestions? (20 points)
Avg Size Per Type (Lbs)
Avg Length Per Type (Miles)
*rounded to the nearest whole number*
Based on these averages I don’t really have any particular suggestions but we can see the SP type is the least efficient but small package delivery is usually local and there are many of them going many different places. The biggest concern I would think is the LTL shipments. Packing the trucks as full as possible to utilize the maximum cubes of the trailer is extremely important, the most expensive thing you’re shipping when it comes to the cost breakdown is the empty space not being used. So improvements could be in order there. Especially considering the LTL shipments appear to be going further on average than the TL shipments. There should be no reason why those trucks aren’t being filled to max weight. (We can assume max weight in this scenario is somewhere around 17,000 Lbs)
5- For each carrier type, calculate the averages for on-time delivery, damage-free delivery, billing accuracy and cost and comment on these numbers. (30points)
a.Based on your calculations, do you have any recommendations to improve transportation planning for Blue Star? Explain the way how these suggestions would be actualized?
b.How would you deal with billing accuracy, on time delivery and damaged goods issues?
6- Do you see any other opportunities for cost savings? Provide examples. (You may focus on top origin-destination pairs) (15 points)
There will always be opportunities for cost saving. Focus should be placed on the average size and length with the top origin-destination pairs. Considering these pairs are the most abundant and expensive, you should take advantage of each trailer you have. Each trailer not filled to max utilization costs money on the shipping end. The total number of LTL shipments is 33,035 and the total of TL shipments is 9,201. The total number of truck shipments full or not is 42,236. This means that 78% of these truck shipments are not full loads. It’s tough to calculate the exact amount this costs the company just based on other outside variables but we can assume it’s costing them a substantial amount. So businesses should evaluate the “why” when it comes to the trucks not being full, whether it be lack of labor, or lack of time, or whatever the case. If the data provided volume as well as weight we could get an accurate number as to how much money is being lost per truck shipment on average.


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