Case Study

Same-Day Delivery as a Path to Cost Savings for an Optical Lens Lab

Reading Time: 3 minutes

Overview

When a leading wholesale optical lens laboratory changed management, its new executive team was eager for and open to fresh ideas for improvement. So, they asked USPack, the lab’s final mile logistics provider of 15+ years, what else we could do. As one of a pair of service providers for the lab, USPack’s team jumped at the chance to dig into the lab’s extensive logistics database to determine a more holistic and effective solution.   

By centralizing and examining previously siloed final mile service provider data, USPack was able to develop a comprehensive plan that optimized routes, provided premium same-night service to more customers, and cut delivery costs by over $20,000 per year. 

USPack’s strategic and analytical approach resulted in lower total final mile costs and more lab customers receiving premium delivery service. 

Challenge

The wholesale optical lens laboratory, which serves independent optometry practices and other eyewear sellers, uses a combination of USPack and a national parcel carrier to handle all its final-mile deliveries. Before new management, USPack provided premiere same-night delivery service to the lab’s larger customers and those within a 250 to 300-mile radius, while the national parcel carrier managed next-day delivery for the rest of the lab’s customers. 

Under the old methodology, information on USPack deliveries and the national parcel carrier’s deliveries was kept siloed. Without a centralized approach to final mile logistics, the lens laboratory didn’t realize it was missing out on key cost cutting opportunities while providing a premium delivery service to more customers. 

Solution

While most people associate Final Mile with just cars and drivers, USPack knows that successful logistics hinges on data. When the optical lens laboratory trusted us with its entire list of clients and routes, our experienced analysts accepted the challenge.   

Prior to USPack’s analysis, the lab’s sole criteria were limited to cost per stop. USPack’s insights showed that while cost per stop can be one factor, the approach must be more strategic and insight-driven to bring down total costs. For instance, data showed considerable overlap in USPack routes and those of the national provider. By eliminating the overlap and moving these stops to USPack’s routes (thereby increasing USPack volume), USPack was able to reduce per-stop delivery costs.   

In other instances, data showed that some national parcel carrier routes coincided with routes that USPack was already servicing for other clients. By commingling the lab’s parcels with other clients,  USPack was able to charge the lab 30% less than what the national parcel carrier was currently charging for these deliveries. Not only that, but these deliveries would now become same-night deliveries (rather than next day), enabling the lab to provide better customer service at no additional cost. 

Results

The laboratory’s new management was impressed by USPack’s strategic and analytical approach, which resulted in lower total final mile costs and more lab customers receiving premium delivery service.  

 USPack now carries out an average of 2,400 deliveries a month for the lab. Expanded delivery scope allows the lab to enjoy the following benefits:  

  • Per-delivery cost savings. The lab saved an average of $1,680 per month by switching customer stops previously handled by the national parcel carrier to existing USPack routes. 
  • Additional cost savings. USPack delivers each pair of eyeglasses to a lock box at each customer’s practice. Because the lab also does lens repair, its customers can leave any lenses in need of repair in the lock boxes for pick up. This two-way courier service better supports the lab and its customers and comes at no additional cost. 
  • Added security. USPack deliveries go directly from the lab to customer lock boxes, not through a centralized distribution center. Drivers take pictures of empty lock boxes to document instances in which there are no lenses for return and keep careful track of how many glasses were dropped off or picked up at each location. Because of these additional security measures, USPack has never had to file a claim for missing eyeglasses in over 15 years of partnership. 
  • Better customer service. USPack deliveries are made same day in the evening, so lenses ordered on any given day are always available to customers first thing the following morning. Prior to USPack’s guidance, the laboratory’s national parcel carrier made their deliveries next-day only. Now, with more deliveries on USPack routes, more customers get their lenses faster.  
  • Less room for error. USPack provides our dedicated drivers with detailed notes on where to find lock boxes at each stop. Consistency helps accelerate delivery and minimizes error. Furthermore, if the lab accidentally mislabels an address on a pair of glasses, it can let USPack know, and a driver can quickly retrieve the misdelivered pair and deliver it to the correct address, boosting communication and thus, efficiency. 
  • Ongoing route optimization. As the lab increases its eye care practice customer base, the USPack team continues developing the most efficient and cost-effective ways to complete deliveries, adding stops to existing routes or commingling whenever possible.  
  • Better relationship management. USPack’s new solution has strengthened an already trusted, longstanding final mile relationship. By opening itself up to the full scope of USPack’s logistics capabilities, the lab has more active communications with its local USPack team and schedules onsite meetings whenever needed—solving new final mile challenges as they arise. 

Get in touch today to learn more about how we can tailor solutions to your order servicing and delivery challenges.

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