Case Study
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.
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.
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.
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: