A Unique Pricing Solution Brings Big Results for a Food Distribution Giant
Driven to maximize efficiency and reliability
In the food distribution industry, efficiency, reliability, and predictable cost controls are key to success. For one of the nation’s largest food distributors, managing freight movements from multiple distribution centers while keeping costs in line became increasingly difficult as their company- owned assets reached full capacity.
The distributor’s need for alternate capacity solutions led them to explore brokerage options. The distributor needed more than a simple capacity solution, so they sought a partner who could align with their business goals while maintaining customer satisfaction.
That’s when Paper Transport stepped in to help.
The challenge was cautiously navigating capacity and consistency
The food distribution leader faced two key challenges. The first was finding the additional capacity to meet escalating demand. The second challenge was establishing pricing consistency to gain better control over budgets.
The organization's reliance on multiple brokers, due to the network's unpredictability, led to significant pricing fluctuations across various lanes. The inconsistency not only consumed financial resources, it also had the potential to drive service interruptions that could degrade customer satisfaction.
To sustain and grow their operations, the distributor needed a solid partner capable of providing reliable capacity solutions while mitigating rate fluctuations.
Turning to a collaborative logistics strategy created an effective solution
PTI worked closely with the distributor's transportation team as they reimagined their pricing strategy. The network analysis revealed an interesting trend. The loads originating from individual distribution points exhibited discernible patterns that could be categorized into specific mileage bands.
These bands looked like concentric ripples from dropping a rock in a pond. Specific bands were created as pricing zones in which all loads landing within a band would move at the same cost. This innovative approach gave the PTI team a clear set of expectations, allowing them to build relationships with the right carriers to move loads within the mileage band at an established price.
PTI’s performance hits on all cylinders
100% Acceptance
100% on-time pick up
98% on-time delivery
Collaboration and unbeatable performance drive solid results
PTI was an early adopter of the pricing zone concept, collaborating closely with the food distributor to ensure the concept worked for everyone involved. PTI prides itself on the consistency of its load acceptance and service. The team worked within the pricing bands and quickly became this distributor's go-to broker.
In fact, that level of reliability earned PTI the first look at additional loads, even if they weren’t the lowest price broker on the lane. PTI’s first-rate performance has also earned them the opportunity to continue growing the business and start moving loads from multiple distribution centers. New opportunities from the distributor continually arise as PTI continues to serve at the highest levels.
PTI continues to move its distribution customers forward
The success of innovative solutions and strategic partnerships is how PTI continually helps this distributor meet its objectives. By collaborating with the PTI team, the distributor addressed its immediate capacity challenges and gained critical control over its budget. As the industry continues to evolve and rely more heavily on efficiency, reliability, and strategic collaboration, PTI continues working with our customers to ensure they have the solutions they need from a partner dedicated to moving their business forward.