Huttig Building Products
Learn how Huttig Building Products used software and solutions from TMW Systems to improve its transportation management. Read the case study results.
When the construction industry was ravaged by the housing slowdown in 2007, Huttig Building Products knew it needed a technology solution to properly manage rising delivery costs and declining sales.
As one of the largest distributors of building products in the country, the company analyzed its business processes, reviewed available software products and found a perfect match in Appian DirectRoute—Route Optimization Software from TMW Systems. The solution complemented the company’s core competency—that of a door and moldings manufacturer with 36 distribution branches—and enabled Huttig to remain fluid on its delivery costs based on market fluctuations.
Since the installation of DirectRoute, Huttig can now view sales and transportation costs simultaneously. The ability to hold their delivery cost as a percent of sales directly impacts their bottom line, and has produced significant savings in a variety of ways including:
- Reduction in idling
- Decreased fuel costs
- Reduced trip mileage
- Fleets right-sized
And the benefits didn’t stop there. Management continued to see cost and productivity improvements by taking advantage of another key feature of DirectRoute—the automated routing feature.
A review of active routing processes led to a reduction in the RPMs in the engines of the company’s straight trucks and tractors, ultimately resulting in a savings on average of one half to one gallon of fuel per mile. With 10 million driving miles annually, the positive impact to the bottom line was dramatic: the removal of 6 miles from a route saved one gallon of diesel fuel. The review of 300 initial trucks led to a smart-sized, and optimized, fleet of 270. And, management was able to remove $2.5 million from their budget.