How Freight Network Optimization Drives Efficiency
At a glance: Freight network optimization uncovers opportunities to reduce miles, improve driver utilization and lower costs across your supply chain. Our Dedicated Contract Services® team combines engineering expertise, technology and network density to deliver measurable efficiency gains for our customers.
When you find ways to make your freight network more efficient, it can streamline your operations and create cost savings. When we optimize a network, we rely on technology to see the full picture: routing, touring, tracking, equipment and more. We also rely on our people, who bring innovative ideas for further improvements based on their knowledge and experience. Keep reading to find out how our Dedicated Contract Services® team leveraged our people, technology and capacity to deliver efficiency and cost-savings for two customers and their integrated network.
Ready to optimize your network for efficiency?
Freight Network Optimization in Action
Prior to working with J.B. Hunt, two of our customers – a corrugated paper manufacturer and a custom box producer – each operated independent transportation networks. When the first customer outsourced fleet management to us, we delivered their paper to the second customer, who later chose to outsource their fleet to us as well.
With both customers’ locations now in our network, our engineers saw an opportunity to increase efficiency. The 782-mile route serving these customers included three out-and-back trips from the same location. This route got the job done, but we knew it could be more efficient.
Our Engineering and Technology team analyzed network components including:
- Total mileage
- Number of stops
- Number of empty miles
- Amount and dimensions of products being shipped
- Trailer fill percentage
- Number of drivers and trucks used
Their revised route included multiple stops designed to improve efficiency and reduce empty miles. It totaled 499 miles, almost 300 fewer than the original, and included a stop to pick up freight for an inbound vendor or third-party backhaul. This change reduced empty miles by up to 10% and added approximately $250,000 in backhaul revenue across the network.
Our team also identified a third customer whose westbound loads were a good fit for the backhaul program. By coordinating these shipments and moving just five loads a week, we saved our second customer an additional $100,000, which they shared with our third customer.
This is what our Customer Value Delivery® methodology is all about: pursuing continuous improvement, providing exceptional service and creating added value for our customers.
How Does J.B. Hunt Improve Network Efficiency?
When you outsource your private fleet with our Dedicated Contract Services team, we’ll use the combined strength of our people and technology to improve your network’s efficiency. Our engineers create tools that improve visibility, decision-making and cost-efficiency. Our operations team will manage the day-to-day needs of your network, giving you the freedom to focus on your core business.
Here are just three of the strategies we can use to boost efficiency within your network:
- Optimize Routing and Touring. Empty miles are wasteful and expensive. Our engineers will use our integrated freight technology to analyze your network and streamline where it makes sense. With better driver utilization, for example, you can save on fuel costs and ensure you aren’t operating more trucks than needed.
- Improve Trailer Fill Percentage. Our engineers can review load plans and product dimensions to evaluate trailer fill percentages. By making small adjustments, we may be able to move more freight in fewer shipments, increasing efficiency.
- Leverage Network Density. In the example above, our density created the opportunity to swap empty miles for another customer’s westbound freight. Our team’s insight and persistence in using our greater network to create supply chain cost savings is one more way we deliver exceptional service for you.
Optimizing a transportation network takes time and effort. One of the benefits of outsourcing fleet management is having someone to handle these details for you. If you’re spending too much time managing shipments, we can help.
Innovating for Your Business
When you outsource your private fleet to our Dedicated Contract Services team, we’ll handle everything from driver hiring to network optimization. Because we’re Driven for You™, we’re always looking for ways our technology can add value and efficiency to your supply chain. Let us do what we do best so you can focus on what you do best: growing your core business. Together, let’s build a network that delivers for your customers. Connect with us to get started!