Service and Savings in the Supply Chain

Service and Savings

Many retailers and manufacturers focus on transportation spend when looking for strategies to manage costs in their supply chain. Companies attempting to take advantage of transportation discounts by switching carriers or shipping less frequently and stockpiling products end up increasing inventory holdings, costs and sacrificing service. Depending on the type of products and business, carrying costs can be as low as 10% and as high as 75%, with the average being 25%. In addition to inventory concerns, today’s market brings several other challenges to shippers. Supply has become constrained with the effects of ELD’s on driver capacity, overall demand is up, rail service is extremely challenged, and carriers are struggling to live up to their capacity commitments.

Companies using a discounted carrier approach may be costing themselves more money and neglecting the needs of their end users. Additionally, these companies could be delivered paper rates that aren’t backed by the capacity solutions needed to service their customers. This can drive costs up quickly for a shipper, as they are forced to take their business to a load board or sacrifice service. A reputable transportation and logistics provider is a versatile resource for managing supply chain costs. The right company acts more like a business partner than a carrier and takes the market, operations, and inventory costs into consideration to help a network function more efficiently.

As a publicly traded company with over $4 billion in revenue, Hub Group delivers innovative, customer-focused solutions and industry-leading service to help customers lower costs, improve visibility and gain more control over their supply chains.

“We take our commitment to our customers very seriously. Hub Group customers understand that we are much more than just a transportation company; we are a supply chain solutions provider,” said Phillip Yeager, Chief Commercial Officer at Hub Group. “We constantly go the extra mile to bring our customers ideas and options to help them save money and improve efficiency.”

Investing in people and technology to maintain high levels of service has also prepared Hub Group’s customers for a leaner shipping journey. Hub Group utilizes a “One Hub” approach to their business, giving their customers a single point of contact that has industry vertical expertise and the versatility to offer solutions across transportation modes. These solutions are designed to deliver capacity when and where it is needed to effectively service the needs of their customers. Hub Group also leverages its online portal, Hub Group Connect, to provide customers with detailed tracking and visibility, including easy access from any desktop or mobile device.

When considering the total cost of operation, transportation makes up only one part of the equation. Outstanding service and capacity solutions might cost a little more on paper but when a true partnership is forged with an expert multi-modal solutions provider who can deliver, the value provided goes straight to a company’s bottom line.

Hub Group Logo

Hub Group, Inc. is a transportation management company that provides multi-modal solutions throughout North America, including intermodal, truck brokerage, dedicated and logistics services. As a publicly traded company with over $4 billion in revenue, Hub Group’s organization of over 3,500 employees delivers innovative, customer-focused solutions and industry-leading service to help customers better control supply chains and their costs. For more information, visit


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