As James R. Hagerty writes for The Wall Street Journal, it is commonplace for manufacturers to outsource their truck deliveries. But Ashley Furniture Industries Inc. is doing just the opposite. What might your supply chain learn from this?
Leading the Fleet
Ashley considers their roughly 800 owned and operated trucks to be a core competency. In fact, they are so efficient that they can even charge other companies a fee to haul goods for them. About 80 percent of returning Ashley trucks are carrying other businesses’ goods. Drivers are expected to build relations with retailers, and they get paid more for loading and unloading trucks, averaging out at over $70,000 annually. Turnover is only about 10 percent, compared to the 90+ percent turnover at trucking companies. This strategy may not work for all businesses, but it is a worthy case study in efficiency. You can read the full article here: http://www.wsj.com/articles/a-radical-idea-own-your-supply-chain-1430343217