The LTL truck line client's network had been developed over a long period of time as company grew. Client wanted to understand if the network could be modified to either lower cost or improve service.
- Developed model to assess options for changing the network:
- Adding terminals
- Removing terminals
- Changing which customers are served by which terminals
- Assessed total corporate cost from various network configurations:
- Terminal ownership
- Terminal operations
- Evaluated service impact of various changes
- Determined preferred network change - balanced cost and service gains with risk of change
- Assisted client in development of implementation plans, including communication plans of the impacts on various constituent groups
Client reduced number of terminals 10% and costs by $30+ million, while improving overall network-wide transit times.