30% Cost Optimization: The Story of a Top Worldwide Moving Company

Optimizing Shipping Costs in a Competitive and Seasonal Market: The Story of a Top Worldwide Moving Company


Time to read: 5 min.

Shipper facts

  • Worldwide moving & relocation company with over 50 years of experience.
  • One of the largest moving companies in the U.S.
  • Operates its own nationwide moving and storage facilities across the U.S.
  • Committed to offering low rates in the market with high quality service.
  • GLT Logistics customer for 5+ years.

Challenge

Control shipping expenses in a seasonal market to become competitive nationwide while maintaining high service levels.

Results

This international moving company saw an optimization of 30% in shipping costs while gaining the shipping capacity and flexibility that allowed the company to meet customers’ demand during the peak season.

Full Story

This international family-owned moving company is committed to delivering high quality moving and relocation services at affordable rates. It offers a wide range of relocation services including local, long-distance, and international shipping of used household, institutional and commercial goods, furniture and equipment along with packing and storage services. Since shipping is at the core of their service, the success of this company depends on the day-to-day logistics that support the operation of moving assets across the country.

The moving services industry has grown at an average of 0.6% over the last five years. This is the result of the strong and steady growth of the housing market. The number of businesses within the industry has also grown and competition is getting fierce. As competition grows, obtaining a competitive advantage became a strategic need.

Another challenge for the company was the reality of seasonal demand. Summer is by far the busiest time of year to move with nearly 60% of annual U.S. moves taking place between May and August. For the company, maintaining the staff and trucks needed to meet the demand in a few months for the whole year was difficult.

Concerned about the growth of the company, the owners of this international moving company needed a solution that would increase revenue without exceeding logistics costs in order to be competitive in the national market. Focusing on interstate moving appeared to be a viable option because interstate moving represents on average twice the revenue than intrastate moving and accounts for almost 15% of all the relocations in the U.S. But, these relocations require more shipping capacity because more trucks and staff are needed to serve customers in different states. As a result, costs can increase drastically, affecting the customer.

The challenge was clear, how to optimize the shipping process for long hauls so that the company could provide interstate customers their customary high level of service at affordable rates without sacrificing profitability.

By partnering with GLT Logistics, the company found a one-stop shopping solution that helped to optimize their shipping process.  A team they knew and trusted brought personalized solutions to the table and took care of  every new shipment so they could concentrate on their growing their business.

In order to deliver these solutions, GLT analyzed the shipping process of the company to understand their specific needs around interstate relocations. They found that because of the nature of the business, the shipping process required special attention,  Moving household items is not an easy task due to the value that each load represents for the customer. Also, the specific knowledge needed to pick up and deliver in residential areas required special attention. Knowing that, GLT developed important implementations to the company shipping process that included:

  • Establishment of a dedicated team to manage all logistics needs.
  • This team allowed the company to save on wages as the process became more efficient.
  • The shipping claims process also became easier since the team was able to manage their own claims.
  • Access to a broader carrier network.
  • The company obtained the capacity needed to move their shipments in time even with additional services required.
  • Both nationwide and local options with specialized carriers allowed the company to optimize costs.
  • Implementation of a Transportation Management System. 
  • This TMS enabled the company to receive shipping quotes in seconds 24/7, which allowed them to send quotes to customers faster.
  • By managing all their shipments in a single platform, the company was able to view an overview of their operations with a listing of every shipment status on a single screen.

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GLT helped us remain competitive in a competitive marketplace due in large part to their daily, operational support and assisting in implementing Shipper of Choice best practices into our supply chain network.


Director of Transportation

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Summary

GLT Logistics was able to help a family-owned moving company address the very real issues of rising costs and seasonal demand with a personalized and highly innovative supply chain solutions. The team will continue to work with this company to leverage their success and address the ever changing shipping market with even more dedicated transportation solutions for the future. DOS-FLECHAS

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