DCC MODEL = SAVINGS + SERVICE Challenge In 2014, a major manufacturer of medical technology spent nearly $1.1M in freight cost on inbound shipments of raw materials, supplies, and parts to their manufacturing lines from the Midwest region (comprising MN, IA, IL, and WI). All shipments were executed by third-party carriers and planned on an individual basis between the supplier and carrier. Analysis of the 2014 data revealed a high frequency of pickups occurring at many of the supplier locations each week – an average of 36 pickups for the 16 suppliers in the region. Additionally, each pickup was of relatively low volume – an average 3.1 skids. This combination of a high frequency of pickups coupled with low volume led to discussions of how Kenco could partner with the manufacturer to lower

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