Air Distribution, a subsidiary company of Johnson Controls, Inc. was incurring freight reclassifications due to density challenges as well as a much higher rate of lost and damaged freight. The decision was made corporately to run a Pilot program with FreightSnap to better document their freight as it is tendered and utilize dimensioning and weighing technology to improve rating efficiency and reduce lost freight billing opportunities.
The Solution
The two companies collaborated on a test location within the JCI distribution network. The El Paso center was chosen due to the fact that they were having the highest number of issues with reclassifications. FreightSnap installed an FS 5000 LTL Pallet Dimensioning system over the top of an existing scale. The scale was integrated to the Dimensioning system allowing for a complete set of data to compute density. FreightSnap also provided a mobile solution that provided the capability for JCI personnel to take images of freight as it is loaded on LTL trailers as well as multiple images of freight as it is dimensioned. (See Images Below).
The Result
During the pilot project, the facility personnel ran all LTL shipments through the FS 5000 system and recorded actual density and used the results for rating within their TMS. The results were eye opening.
“We were incurring freight audit charges at a rate of 25% on all of our LTL shipments prior to utilizing the freight dimensioner. It was impossible for us to argue these charges as we didn’t have certified dimensions to present, nor did we have available images of our freight. What we discovered were several things. First, we figured out that even though we banded most shipments, they were still moving enough on the pallet that it increased the size enough at the Carriers terminal, that we incurred penalties. Within the first two weeks of utilizing the Dimensioner, we were able to successfully dispute those types of charges. The second thing we figured out was that we were not classifying all of our freight correctly. The Dimensioning system was accurate, and our ratings improved. Our plant accountants noted that our freight audits dropped significantly as well as our freight billing variances. Lastly, during the pilot period, three high value shipments were lost by our Carrier. The pictures we had of the freight inside the Carriers trailers as well as the other images we could provide led to the recovery of the shipments. That was a huge win for us and our customers. Lost shipments present two problems. The first is the value of the freight, which is substantial. The second is the lead time for our products. When something like that is lost, it leads to huge problems for our customers who would have to wait for the product to be remade. All in all, this project was hugely successful and has led to further implementation across our network. The FreightSnap team has been great to work with and they were quick to resolve any issues and make some nice enhancements to their mobile system which made the process easier for us.”
Joe Garcia – Air Distribution, Inc.
The Return on Investment
The FreightSnap FS 5000 Dimensioner and Mobile application are built to last for 10-20 years and the average cost per day is less than $17 all in. Between productivity gains, freight loss reductions, and audit reductions, the system basically saves you money and hassles on the first day you use it.
