In light of the trucking capacity crunch, many shippers would be better off de-emphasizing spot market sourcing and focusing more on development of closer, contractual relationships with a select group of carriers. Providers of dedicated fleet services – like KANE – who own the trucks and hire/manage the drivers cannot only secure capacity in an uncertain market, they can also help to reduce costs.
Yes, contrary to popular opinion, dedicated freight contracts can drive superior savings over time. Steady, predictable freight gives carriers time to mine for customers in the area to minimize deadhead miles. While the spot market often yields an attractive deadhead rate, the same result could be achieved with dedicated carriers, who then share cost efficiencies with you.
Using a regional distribution model, we’ve gone from a 2-3-week order-to-delivery cycle to 2 days. KANE’s freight team has been essential to implementing this strategy in the critical Northeast region.
- CEO, G3 Enterprises
KANE offers dedicated services to customers throughout the Northeast. Benefits include:
Pennsylvania is one of 17 states that controls the distribution process for alcohol sales in the U.S. The PLCB purchases and distributes all wine & spirits sold in the state, making it one of the largest purchasers of wines and spirits in the country. KANE operates a DC for the PLCB and manages delivery to 212 of the agency’s Fine Wine & Good Spirits stores. Orders are sent to KANE after midnight and must be staged that same day and delivered to stores the following day. Most deliveries are unloaded by hand. Wine and spirits store delivery doors are often located down narrow alleys, requiring side-door delivery. Special care must be taken for this highly fragile inventory.
The dedicated fleet services contract between the PLCB and KANE began in 1989 and continues today due to the quality and efficiency of the KANE freight delivery solution.
One of the world’s largest wine makers, based in California, moved to a regional distribution model where wine travels to regional distribution centers across the country, where product is staged for final delivery. KANE is the exclusive delivery partner for all shipments in the Northeast. Distributors knows precisely when orders will arrive thanks to KANE’s adherence to pinpoint delivery windows.
As a result of the regional distribution model, distribution cycle time went from 2-3 weeks to 2 days and KANE enabled this wine maker to minimize the cost of transportation.
Consumers are now demanding that brands demonstrate their commitment to corporate social responsibility. Sustainable freight practices are a core element of such programs, and KANE understands our obligation to move our customers’ products using the latest green freight practices.
We use a Tier 1 transportation management system to optimize freight consolidation and routes, reducing trucks on the road and fuel consumption.