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Customer Case Study: Geo-Tech Polymers
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Company Overview
 Geo-Tech Polymers, based in Westerville, OH, specializes in recycling coated plastics used in consumer and automotive applications. Geo-Tech has developed an environmentally friendly process to remove paints and metals from plastic substrate materials without the use of chemicals or solvents. Through their advanced polymer recycling technology, Geo-Tech can return the full value of reclaimed plastic materials to manufacturers for reuse in high-end applications at a significant savings.
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Business Needs
Each year Geo-Tech ships several million pounds of coated plastic waste (automotive parts, CDs/DVDs, plastic casings) from all over the U.S. into their warehouses for processing. As part of their closed-loop recycling, Geo-Tech then ships the de-coated plastics back to manufacturers and compounders in the form of clean regrind or plastic pellets. Transporting all that material in and out of their warehouses results in annual shipping costs of approximately $500,000 for the company. Geo-Tech General Manager Doug Gels comments, "Freight shipping represents a significant portion of our operating expenses. Anything we can do to reduce shipping costs will directly improve our profitability."
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Challenges
As rising fuel prices continue to drive up freight shipping costs, Geo-Tech was searching for new ways to leverage its transportation budget and solve the following challenges:
- Significantly reduce shipping costs. Geo-Tech employed Third Party Logistics Providers (3PLs) and Freight Brokers to negotiate Truckload (TL) shipping rates on their behalf. While 3PLs offered discounts off tariff rates, Geo-Tech was looking for additional savings as well as opportunities to leverage open capacity with carriers through "spot quote" pricing.
- Simplify the process of obtaining timely spot quotes. Geo-Tech relied on 3PLs and brokers to find the best spot quote prices on specific loads. The process was inefficient and time-consuming and often did not result in measurable savings.
- Improve documentation and logistics for customers. Geo-Tech handles both inbound and outbound freight for the majority of their customers. As such, they required a better system to track documentation in one central location, regardless of the carrier used.
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Solution
In early 2008, Geo-Tech began using CarrierStore's online xCHANGE solution to receive spot quote bids directly from major LTL and TL carriers. CarrierStore's no-fee service provides direct access to the pricing and linehaul departments of dozens of best-in-class carriers. Shippers receive multiple quotes within an hour based on supply and demand pricing with no added fees and no obligations. Taking advantage of the carriers' open capacity and eliminating broker fees allows substantial savings on the movement of volume and truckload shipments. The xCHANGE also provides a single source to track shipment status and generate electronic reports and documents, including Bill of Lading.
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Results
Since using the CarrierStore xCHANGE, Geo-Tech has been able to reduce its monthly freight shipping expenses by approximately 30 percent. According to Doug Gels, "Our spot quotes through CarrierStore are consistently lower than what I could source on my own or through a 3PL. For a typical $500 volume shipment, I'm seeing carrier quotes as low as $300. As a result, I anticipate savings in excess of $120,000 this year on freight costs, which will significantly improve our bottom line and our ability to grow the business."
Geo-Tech is also saving time and improving service with its customers by using the automated xCHANGE portal. Mr. Gels adds, "Where I used to spend hours on the phone or e-mail dealing with multiple carriers or brokers for a single quote, I can now enter all my shipping jobs online with the xCHANGE. Within an hour, I have multiple competitive quotes from well-known carriers. With the click of a mouse, I can choose a carrier based on my specific criteria, whether it's price, reputation, or transit days. Paperwork and reports are instantly generated and I'm billed directly by the carrier, eliminating costs, delays and frustrations that many brokers can bring."
CarrierStore is helping hundreds of small and medium-size companies like Geo-Tech reduce their freight shipping costs, while saving time and improving service. Contact CarrierStore today to see how you can improve your freight shipping options in the face of rising transportation costs.
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