Revitalizing Shipping Operations for La Cantina Doors
La Cantina Doors faced a daunting challenge in 2018 when no carrier was willing to handle their high-value glass doors due to a history of high claims ratios. The company’s profitability was severely impacted as they were left with only one carrier option that offered exorbitant rates. To overcome these obstacles, La Cantina approached Razor, a logistics consulting firm, to find a solution that would improve their shipping operations and restore profitability.
Challenges Faced by La Cantina
- Limited Carrier Options: La Cantina Doors struggled with a lack of carrier choices, which led to monopolistic pricing and limited shipping flexibility.
- High Claims Ratio: The company’s history of experiencing a high claims ratio made carriers wary of accepting their freight, particularly since they dealt with delicate glass products that were susceptible to damage during transportation.
Analyzing the Situation
Razor conducted a comprehensive analysis of La Cantina’s shipping operations to identify the root causes of their challenges. Two critical issues came to light:
- Insufficient Packaging: La Cantina’s existing packaging did not meet carrier standards for ensuring the safe transit of delicate glass doors, resulting in an increased risk of damage.
- Carrier Perception: Carriers perceived La Cantina’s shipments as high-risk due to their past claims history, leading to a reluctance to accept their freight.
Results and Impact
Razor’s strategic interventions had a profound impact on La Cantina Doors’ shipping operations and overall profitability:
The partnership between La Cantina Doors and Razor exemplifies how strategic analysis, innovative solutions, and personalized negotiations can transform shipping operations and overcome significant challenges. By investing in better packaging, securing additional insurance, and addressing carrier concerns, La Cantina achieved a remarkable turnaround in their shipping efficiency, profitability, and carrier relations. The successful collaboration with a diverse range of carriers highlights the importance of continuously improving shipping practices to meet industry standards and enhance business success.