Managed Transportation Solution Enables Smarter, More Cost-Effective Shipments of Products to the End Buyer
GREENWICH, Conn. and KANSAS CITY, Mo. - Oct. 1, 2001 - NewRoads, a business process outsourcer of fulfillment services that enable retailers and manufacturers to deliver their products more efficiently to their customers, today at the Council of Logistics Management’s annual conference introduced NewRoads Chauffeur, its managed transportation solution to help client companies streamline logistics and shipping costs.
On behalf of its more than 200 clients nationwide, NewRoads annually ships out more than 20 million small parcels and mails more than 40 million pieces of so-called “flat mail,” such as catalogs and requested literature. Factor in the several thousand inbound shipments of merchandise into its network of warehouses, and NewRoads is a large-scale provider of shipping and logistics services.
With NewRoads Chauffeur, NewRoads can now leverage its total scale for its clients, providing them with a unique set of management solutions to give them greater control over and lower costs for inbound freight and outbound mail and small-parcel shipments.
While exact savings achieved may vary based on clients’ specific shipping needs, NewRoads Chauffeur has the potential to shave significant costs out of inbound freight shipments and to reduce rates governing U.S. Postal Service First Class mail, UPS Ground shipping and UPS 2nd Day shipping.
According to NewRoads’ research into transportation costs:
· The cost of inbound freight typically accounts for between 3 percent and 5 percent of the cost of the merchandise. This expense is usually buried in the cost to the consumer and not managed as a critical cost-savings opportunity for the shipper.
· Outbound shipping constitutes from as little as 10 percent to as much as 50 percent of total fulfillment costs. On their own, few merchants qualify for the best discounts on shipping based on their own parcel volumes.
· There are few alternatives to First Class mail when it comes to mailing requested literature – retail catalogs, direct mail pieces, fliers and coupons. Lower-cost carriers of “flat mail” and small parcels often provide unacceptably slow delivery times.
“For retailers and manufacturers, inbound and outbound shipments account for a significant amount of the cost of doing business,” said Michael Shelton, NewRoads’ senior vice president of sales and marketing. “Part of NewRoads’ unique value proposition as a business process outsourcer is that we understand our clients’ fulfillment, marketing and customer relationship management needs so completely, we act as a seamless, invisible partner to ensure the long-term satisfaction of their customers. By leveraging our scale to also decrease a costly part of their business, we’re helping our clients be more successful, and more profitable.”
Chauffeur is NewRoads’ latest offering among its Logistics & Distribution solutions, maximizing strategies and efficiencies of a nationwide network of fulfillment and distribution centers from Delaware to California. Among its Logistics & Distribution services, NewRoads provides:
· Logistics Planning and Execution: Assists clients to find new ways to reduce the cost and increase efficiencies in moving merchandise
· Expediting: Supports best practices such as Advanced Shipping Notices (ASN) and Cross Docking to speed inbound and outbound processes
· Zone Skipping: Mitigates inefficiencies inherent in standard delivery programs by combining different carrier solutions to speed transit and reduce costs
· Supply Chain Optimization: Assists clients in improving the economies of their business by increasing efficiencies throughout the supply chain
NewRoads provides business process outsourcing solutions that enable retailers and branded manufacturers to enhance their brand image while fulfilling customers’ needs more efficiently. NewRoads integrates back-end technology systems with warehouse-fulfillment capabilities to deliver products, information requests and rebates to customers who order over the telephone, via the Internet, mail or by catalog. Based in Greenwich, Conn., NewRoads operates a nationwide network of 20 facilities serving more than 200 clients, including Restoration Hardware, Abercrombie & Fitch, Godiva, Alloy Online, Topps, Bluefly.com and Avon. For more information, visit the company’s Web site at www.newroads.com.
# # #