Case Study: How we helped Implus reduce accessorial costs by 65%
The story of Implus and AV Logistics echoes what so many shippers need most these days which is a partner with a powerful combination of technology, processes, and expertise to seamlessly manage all facets of the drayage operations.
The Challenge
With accessorial spending averaging $850 per container and delivery times averaging 11 days, Implus needed to reduce accessorial costs, improve delivery times, and streamline drayage operations.
Headquartered in Durham, North Carolina, Implus is home to 18 category-leading active lifestyle accessory brands. The company’s innovative products are found in more than 60,000 retail outlets and 60 countries worldwide. They have three domestic locations and a presence in France, South Africa, Hong Kong, and Australia. Implus had a smaller staff handling dray operations and a one-person transportation department. They were using a large, national truck brokerage company that was adept at helping with capacity but could not manage the company’s overall drayage programs. Implus itself was using live load delivery appointments for containers. It caused problems when capacity was tight because they had to match drivers to a specific distribution center schedule to complete deliveries.
Implus tried to alleviate the challenge by moving to a drop container delivery program, where drivers would not have to wait for unloading as necessary with the live load system. However, Implus regularly required drayage from the Norfolk International Terminal to inland distribution centers in Durham and Clayton, and the free periods at the port were often insufficient for their needs. At the end of the season, Implus examined their numbers and didn’t like what they saw. Their accessorial spend climbed to $800- $900 per container thanks to excess chassis rental fees, per diem, demurrage, bobtail, storage, and other charges. They then realized their current logistics partner had a limited understanding of the unique requirements of managing container flow between the port and the distribution center.
Client Goals
Implus knew they needed a better partner so they searched for a drayage specialist with a core focus on drayage to serve all of their needs.
Our Solution
Implus chose AV Logistics based on their vast drayage experience and Coreviz, their container visibility platform.
All but one company had advanced visibility technology comparable to what AV Logistics offered in Coreviz—their proprietary supply chain visibility solution. In fact, Coreviz was a differentiating factor, along with the expertise of the AV Logistics team, which was prepared to manage Implus’ complex drayage needs. Of the ten vendors Implus considered, the internal partners unanimously selected AV Logistics. The Implus team was confident that with their focus on drayage, it would be a successful collaboration. Implus signed the contract in March 2023 and was fully onboarded with AV Logistics by mid-May. With access to Coreviz, Implus was delighted to have daily visibility of their shipping containers and be able to identify containers at-risk of incurring demurrage or detention. AV Logistics helped Implus weigh the cost-benefits of shipping container actions and advised them on the right decisions—like detention versus bobtailing or pre-pulls versus demurrage.
AV Logistics also monitored the different contract terms for the last free days for each container, helping Implus meet deadlines and avoid charges by prioritizing the shipping containers for action as they approached their last free day. Even with half of Implus’ volume moving through NVOs, AV Logistics could manage the changing contract terms and provide Implus the intelligence they need to make the best decisions on behalf of the company. Implus also appreciated a higher level of communication.
AV Logistics eliminated surprises by keeping the distribution centers apprised of ETAs and delays.
The Results
Implus gained significant cost savings, improved delivery times, and created better operational efficiency.
Reduced Accessorial Costs
Demurrage and per diem management programs reduced accessorial spending by more than 60%.
Improved Delivery Times
Time to the distribution center dropped from an average of 11 days to 3.6 days.
Planned Communication
Unavoidable charges, like bobtailing, are planned and communicated accordingly.
Efficient Operations
Expert guidance, including predictive analysis of logistics scenarios, helped Implus operate most efficiently.
Daily Visibility
A daily snapshot of a container’s activity is accessible through Coreviz.
Improved Tasks
The ability to plan inventory, ordering, purchasing and production improved lead time accuracy and speed of lead time increased.
Status Improvement
Coreviz is used to look up container status, report empty containers and plan outbound sales.
Summary
AV Logistics delivered amazing results and improved every aspect of the drayage operation for Implus. If you need a partner with expertise in managing the complexity of your shipping container flow from the port to the distribution center, we encourage you to contact us to discuss your needs.
