Kent, Wash.-based Holman Distribution leases 13 Peterbilt Model 579s, under a full-service lease with Western Pacific Leasing, the local PacLease franchise. The day cabs serve Holman’s 3PL business, which consists of a 1.1 million square foot warehouse that’s home to 100-plus customers who strategically store their goods for area deliveries.

Holman Distribution's transportation service allows customers to call within a 24- to 48-hour window for just-in-time shipments.

Holman Distribution gets a 1/2 mile per gallon fuel economy improvement over the models other leasing companies offered. Fred Olson, general manager for Holman Distribution, tested three brands of trucks. “What’s more, the other leasing companies had a set truck they wanted to lease us and they kept telling us that this spec -- or that spec -- in our operation wouldn’t make much of a difference," Olson says. "But, if you add 1/10th mile per gallon here, and another there; or save 300 pounds with aluminum versus steel wheels; pretty soon finite details add up to something bigger. The folks at PacLease understood that and worked with us to custom spec the Model 579 to maximize fuel economy. They understood what we were after – they knew trucks and they knew specs."

Holman Distribution transports its customers' goods throughout western Washington, and as far south as southern Portland. The Kent, Wash.-based 3PL provider has a 99.3 percent on-time delivery rate. Service is the company's calling card – something it promotes heavily. "So we expect nothing less from PacLease -- reliable equipment is of the utmost importance to us," says Fred Olson, general manger for Holman Distribution. "What’s more, as business ebbs and flows, we can work with PacLease to provide rental trucks if we’re called on for more deliveries than current capacity affords.”

Since moving to PacLease and putting into service Peterbilt Model 579s, Holman Distribution is saving more than $200,000 in annual fuel costs from what the company was spending in 2012. "Once the trucks were delivered, PacLease supported us with driver training,” Holman Distribution general manager Fred Olson says. “The Model 579s are powered by PACCAR MX-13 engines rated at 485 hp with 1,650 ft-lbs of torque at 1,000 rpm and coupled with 10-speed Fuller transmissions. PacLease brought out a torque curve chart and we had discussions with drivers on proper operation. We hit the ground running when it came to proper driving to maximize fuel economy.”

Since moving to PacLease and putting into service Peterbilt Model 579s, Holman Distribution is saving more than $200,000 in annual fuel costs from what the company was spending in 2012.

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By: Brad Hollister

Though optimizing a Supply chain is often imagined to become re-working the warehouse order process, quite a few have discovered that the effectiveness degree of the Supply chain is actually a operate with the all round perspective of the organization. Optimizing a Supply chain often leads into revising accounting practices, order processing, and often instances even touches places such as production and marketing. Supply chain optimization globally throughout the business can actually begin to assist identify other regions of improvement such as supplier romance, warehousing, freight carrier assortment. Collaborating with management to operate across departments can be utilized to leverage other business functions and set the complete organization on a path of procedure improvement. The duties exactly where improvement is most prevalent are typically capabilities these kinds of as materials procurement, vendor qualification, content buying, supplier evaluation, and internal procedure engineering. Firms that utilize six sigma, lean, kaizen strategies in their Supply chain and also manufacturing can adapt these kind of techniques to other components from the organization here are a few examples of how to apply production and Supply chain practices to the relaxation of your organization.

• Quality inspection is often the single variable separating you from a competitor. It is important that your team adopt a 100% quality 100% of the time approach to looking for items lacking an established quality standard. Do not put quality at one particular location in the warehouse. Instead make quality improvement an attitude across the organization.

• Employee cross-training so that employees are versatile for company and employee purposes. A cross-trained employee can be used in several scenarios, and the variety of different tasks will also combat employee boredom.

• Create a positive work environment. Employees should feel empowered which will allow them to take more pride in their work and have a feeling of worth to your Supply Chain.

• Outsourced procurement can be an effective optimization technique to explore, as a proper methodology is defined, quality standards for products and suppliers are established, and risk management are handled during the creation of such processes. These kind of are many benefits of this technique.

• Minimizing extra order touch points from customer support to operations, which can be performed via the conventional order fulfillment these as unnecessary reporting, maybe product or service reconciliation just before shipping or waiting to get a supervisor to administer the orders.

• Inventory holding costs should be balanced to a pull model for consumer demand,thereby controlling production and minimizing time delays. Bill of materials rationalization can be gained and ultimate customer satisfaction can result. This applies directly to procurement and the amount of capital expense that a company holds. Sometimes economies of scale can override holding costs when purchasing raw materials in bulk for example. It is important to know your options.

• Rework of excess material can be reprocessed and reused. An example of this is from an automotive stamping plant, where parts are stamped and the excess material is melted and used for raw material. This will also assist in any green initiatives. This can be as simply starting a recycling program within your organization and reduce paper waste for a greener office.

• Determining and quantifying the current state of your Supply chain is important to find out what is efficient and what exactly is not. Identifying a baseline of latest operations is very important so that the resources expended to make an efficient Supply chain can be justified and either ramped up or scaled back again.

• Feasible alternatives for techniques, administration, and optimization might be handled by simulation software program to optimize processes and also configurations devoid of the real charge and disruption of making the physical adjust. This enables organizations to implement the adjustments and also streamline operations that may save dollars and also or develop added income.

• Cloud web servers can offer extra storage, lower system administration costs, reduce money expenditure, rapidly add extra features, and may minimize administration of the processes itself.

• Process mapping along with after-market service are locations which will be investigated and have the lean ideas utilized to them. By mapping a business enterprise process from end-to-end it allows a holistic picture to emerge as to what the organization is currently accomplishing. By having this as being a reference for historical or intellectual worth these as being a proprietary course of action or intellectual property can illuminate areas of squander. Organizations that give following marketplace solutions such as repairs to out of warranty appliances can seem to automate, track components along with employees much more efficiently, dispatch appropriately trained workers for your correct jobs and also the finest ways to get there, create along with implement a correct procurement approach to source components and suppliers along with track function orders as well as time per project much more closely to increase revenues and also reduce charges.

These types of are just some approaches of how applying a lean or six sigma method can maximize efficiencies along with drive out squander out of your organization. In today’s economic local weather corporations may well just will need to re-evaluate their squander, priorities and also efficiencies. Freight Entry is a Freight marketplace for shippers, 3pl's, and also carriers to see industry situations just before making procurement choices.

SUMMARY

To most companies, the effectiveness of their provide chain indicates the many distinction within the planet. If carriers injury freight or warehouses are not able to get their shipments, often times it could have negative penalties on the livelihood in the organization. Freight Access delivers handful of steps as well as ideal practices to guarantee your provide chain is optimized as well as improved.

Regarding the Author:

Brad Hollister is definitely an Seasoned Transportation Executive with Freight Accessibility, Inc. - the World's Only Online Freight Marketplace. Mr. Hollister includes a passion for Company Growth by innovation, course of action improvement, and also technological innovation. Sense free to get hold of Brad with virtually any inquiries, possibilities, or strategies (http://www.bradhollister.com) or by dialing 312-450-3020.

Fred Olson, general manager for Kent, Wash.-based Holman Distribution, at left, relies heavily on Jim Ellingson, sales representative at Western Pacific Leasing, for ideas on how to get the most out of the company's fleet of trucks. Olson says Western Pacific Leasing, which is a PacLease franchise, and PacLease understand the need to focus on the details to help Holman maximize productivity and fuel economy.

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