Case Study
A national auto parts distributor raced to be first to deliver parts to service stations and repair shops, but their deliveries were plagued by issues with their in-house driver fleet.
Out of 100 courier services invited to a sourcing event, only USPack determined a solution that could meet the distributor’s need for consistent, safe, super-fast deliveries—and, even more, cost savings. USPack devised a tiered coverage system that ensured the distribution sites always had the delivery drivers they needed without the cost burden of idle driver time.
By partnering with USPack, for the first time, the distributor could access tracking delivery accuracy and performance technology. Today, the distributor uses USPack final mile delivery across a wide swath of locations, enabling the company to arrive first with deliveries and earn more sales.
“The more significant game changer was the implementation of a tiered coverage system that matches daily volume comprehensively.”
Auto parts distribution is a zero-sum game of speed and accuracy. Typically, auto repair shops and service stations order a part with three distributors. The first of these, to deliver the correct part to the right location, wins the sale, creating urgency.
Parts orders begin to pour into the distributor at 7 AM when the auto shops open, peak during the middle of the day, and trail off throughout the late afternoon. The distributor was using its own in-house fleet of vehicles and drivers staffed to work all day, even during slow hours. But problems with this in-house model impacted the distributor’s competitiveness and profitability:
Unsure how to proceed, the retailer held an event attended by 100 courier providers, but none could devise a viable solution. That’s when USPack’s Senior VP of national accounts stepped in. Once the distributor’s leadership saw the power of USPack’s ADDI technology platform, with live performance data and analytics, they hit the gas on moving from in-house to outsourced.
The partnership with USPack kicked off with a pilot program across four sites in Richmond, Virginia. We started by identifying and onboarding contracted drivers using our rigorous and methodical process – a process far more efficient than in-house solutions since USPack does this every day in markets across the U.S. Then, drivers participated in a mock delivery day to learn the location of each store within their three-mile territory radius and the details for where packages should be left and with whom.
The more significant game changer was the implementation of a tiered coverage system that matches daily volume comprehensively. The distributor begins each day, when volume is at its lowest, with a minimum base layer of drivers. That number increases as it reaches peak hours, then declines as orders slow down toward the end of the day. Should there be a surge in orders—for example, during the summer when auto repairs and part orders increase—or if a driver is unexpectedly out, the distribution sites can contact their local dispatcher, who relays the request to USPack’s centralized dispatcher. USPack’s flexibility to quickly scale and reassign drivers on an as-needed basis ensures that each location’s needs are met promptly.
Similar to an in-house fleet, drivers from USPack present professionally (in USPack shirts) and are educated on customer delivery protocols and the use of technology. Once again, the distributor realized another major benefit over their in-house system. At drop off, USPack’s drivers use their handheld devices to scan item barcodes and capture customer addresses and signatures – data and images that are automatically sent to ADDI, USPack’s proprietary and secure technology platform.
Before outsourcing, delivery information was opaque; now, the distributor has full transparency into real-time delivery performance. The data and insights gleaned from the ADDI database are reflected in weekly performance reports and enable dispatchers to identify and remedy any issues quickly. A. And because of its ease of use, the distributor can generate ad-hoc reports as needed. Beyond reporting, the technology allows the distributor to publish information like order ETAs for their customers to view online without calling—saving effort for both parties and strengthening business relationships.
The auto parts distributor was impressed with USPack’s substantial impact following a four-month, four-location pilot program, which resulted in more first-to-arrive deliveries and record sales.
The USPack outsourcing solution also led to cut costs. By scaling the number of drivers to sync with order demands, all driver time is optimized, and idle hours are eliminated. More cost reduction came in the form of reduced liability fees and vehicle repair costs as contracted drivers tend to drive their own vehicles much more cautiously compared to on-staff drivers using company vehicles.
After seeing the remarkable difference an outsourced courier solution from USPack made to their bottom line, market share, and customer relationships, the distributor expanded this collaboration to over 50 stores. It’s been several years since this partnership kicked off, and its enduring value is a testament to how outsourced final mile logistics can help businesses grow and gain a competitive edge.
