Tailored LTL Solutions Delivering Cost Savings and a Stronger Delivery Network
The Challenge
A leading specialized sports equipment manufacturer needed a more efficient way to distribute inbound product nationwide. Their network relied on multiple Less Than Truckload (LTL) carriers operating from several import warehouse locations, delivering to both distributor facilities and residential addresses.
While delivery speed was not a critical requirement, the client faced two primary challenges:
- Rising LTL transportation costs
- Limited network reach and operational simplicity
They needed a streamlined solution that reduced spend while expanding access to a broader, more reliable delivery network.
The STG Solution
STG Logistics designed a customized LTL strategy focused on cost efficiency, visibility, and network optimization.
Over-the-Road and Over-the-Rail LTL Services
STG introduced a combined over-the-road and over-the-rail LTL solution for shipments that did not require expedited delivery. By consolidating freight and leveraging the rail network, the client achieved a more economical transportation model. While transit times increased slightly, network coverage and shipment visibility remained strong—ensuring no negative impact on the end customer experience.
Tailored Delivery Options
STG worked closely with the client to customize delivery methods based on destination type. Solutions were designed to meet the specific needs of both wholesale distribution centers and residential deliveries, ensuring consistency and reliability across the network.
The Results
Significant Cost Savings
By transitioning a portion of freight to over-the-rail LTL service, the client reduced LTL transportation spend by approximately 30%, freeing up resources for other areas of the business.
Expanded Customer Reach
Lower freight costs enabled more competitive pricing for customers, helping the client attract new business and expand their customer base.
Sustained Profitability During Market Disruption
The cost efficiencies delivered by STG played a critical role in helping the client remain profitable during the pandemic. Reduced shipping costs combined with increased sales volume positioned the company to navigate economic uncertainty successfully.
Confidence in a Long-Term Partner
As a new STG customer, the client gained confidence in STG Logistics’ ability to deliver creative, cost-effective solutions—establishing the foundation for a strong, ongoing partnership.
