Network Redesign

Client Issue

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. 

Project Approach

  • 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
    • P&D
    • Linehaul
  • 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 Results

Client reduced number of terminals 10% and costs by $30+ million, while improving overall network-wide transit times.