Case study: How a manufacturing company managed to reduce its transportation costs by 50% thanks to the partial transportation option
At Mexicom Logistics, we help our clients find the most convenient logistics solution in terms of cost, capacity, speed, availability and reliability. In this blog post, we present the case study of one of our clients who managed to reduce its ground transportation costs by just over 50%, thanks to the choice of our partial load transportation service.
The problem and situation analysis
Our client is a manufacturing company in the metal industry, located in Mexico.
They have two regular shipping lanes:
From Michigan, USA to Quéretaro Mexico
From Coahuila, Mexico to Ontario, Canada.
The client’s priority was to reduce transportation costs.
- From Michigan, USA to Quéretaro Mexico – 5500 USD
- From Coahuila, Mexico to Ontario, Canada – 6,000 USD
He also wanted:
- Reliable carriers to transport the load
- A company experienced in the tranloading of shipments at the border.
- They could be transloaded from one trailer to another one at the border.
- They were not sensitive to transit time
The logistics and transport solution
We found out that our customer’s former supplier moved the loads door to door in full truckload service. So we decided to analyze the cargo and see if it could move using our Partial Cargo Transportation service.
After finding out that:
- The load occupies 27 linear feet in the truck and
- The load weighs 20,000 pounds and
- It can be transloaded.
We determine that it is within the parameters to be shipped as a partial load. Although this service is not available in Mexico, Mexicom Logistics has a partial load freight transportation services throughout Canada and the United States.
Therefore, the logistics solution consisted of carrying out cargo transportation in full truckload service in the Mexican part and in partial load service in the United States and Canada section.
Since the partial loads do not occupy the entire trailer, the cost for this transportation service is lower compared to the full truckload service. By incorporating the partial load transportation service, it was possible to significantly reduce the cost of transportation.
- On the first route, the transportation cost from Michigan, USA to Quéretaro, Mexico went from:
- 5500 USD using an FTL service only,
- to 2,500 USD choosing a combined solution: FTL service in Mexico and a Partial Load shipping service in the US and Canada.
- 54% in savings by incorporating the partial load transportation option
- On the second route, the transportation cost from Coahuila to Ontario went from:
- 6000 USD using an FTL service only,
- to 2400 USD by choosing a combined solution: FTL service in Mexico and a Partial Load shipping service in the US and Canada.
- A 60% savings in transportation costs by incorporating the partial load transportation option
Savings of between 50 and 60% in transportation costs were generated by switching from full truck service to an option that combines full truck with partial load shipping service.
Do you want to know if your cargo can be transported in partial service?
Find out and save on transport costs!