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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

  1. Limited Carrier Options: La Cantina Doors struggled with a lack of carrier choices, which led to monopolistic pricing and limited shipping flexibility.
  2. 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.

Implementing Solutions

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Packaging Solutions: Razor sourced new, innovative packaging solutions that surpassed carrier standards and offered enhanced protection for La Cantina’s glass doors during transit. This improvement significantly minimized the risk of damage, making the shipments more appealing to carriers.

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Additional Insurance: To build trust with carriers and further safeguard shipments, Razor helped La Cantina secure additional outside insurance coverage. This additional protection provided carriers with an extra layer of assurance in case of unforeseen incidents.

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Personalized Carrier Negotiations: Razor initiated personalized negotiations with carriers, showcasing the company’s commitment to improving shipping practices. They highlighted the measures taken to address carriers’ concerns, such as enhancing packaging and securing additional insurance.

Results and Impact

Razor’s strategic interventions had a profound impact on La Cantina Doors’ shipping operations and overall profitability:

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Expanded Carrier Base: Through Razor’s efforts, La Cantina successfully expanded its carrier network, transitioning from a single carrier to collaborating with 15 carriers. This diverse carrier base included those that had previously rejected their freight, offering greater shipping flexibility and competitive pricing.

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Improved Claims Ratio: The implementation of enhanced packaging, additional insurance, and personalized negotiations led to a remarkable reduction in the claims ratio. The shipments vs. claims ratio dropped to an impressive 0.004%, demonstrating the effectiveness of the measures taken.

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.