RENO, Nev., May 30, 2023 — Family-owned hardwood flooring company American Hardwood Floors (AHF Products®) has been selling quality hardwood flooring for nearly a century. Following the disruptions of the pandemic, AHF partnered with ITS Logistics, enabling them to reduce accessorial fees by 40% per container in the first full month, after the company lost about $1 million on detention and demurrage in 2022.
“We needed assistance navigating through the new challenges brought on by the pandemic,” said Paul Polkinghorn, VP of Supply Chain for AHF Products®. “We were working around the clock to achieve low wait times. The congestion of ocean freight continued to build up at ports, particularly in Cambodia, causing complications getting our containers out, along with having empty containers returned, negatively affecting our customers and warehouses.”
AHF Products® made the strategic decision to partner with ITS Logistics to build a long-term solution. In late December 2022, AHF Products® transferred all their container drayage operations to ITS and booked all their containers to the CY or ramp as opposed to the door. ITS quickly developed SOPs that solidified the communication and operations plans, seamlessly integrated with their purchase management system, and provided a tech platform, giving them complete visibility into tracking their shipments across their supply chain.
“AHF transferred all of their container drayage operations to ITS with the goal of keeping their detention and demurrage number below $25,000 after already spending $1M on D&D fees that year,” said Paul Brashier, VP of Drayage and Intermodal at ITS Logistics. “We created a clear outline of operations plans for AHF with ready-made solutions to any potential challenges. Our tech platform was able to launch seamlessly, and it provided complete visibility into tracking their shipments as well as tying into their purchasing system.”
ITS provided a single platform to oversee AHF’s ocean freight and drayage operations, resulting in peace of mind for their customers and warehouse operations. Before ITS’ resolution, the port congestion was negatively impacting both customers and warehouses simultaneously.
“We were looking for people that are really going to work with us and give us a high level of service. The ITS team gets it, and they’ve worked hard to form a long-term partnership,” Polkinghorn said. “As a result of ITS’ assistance, we project that we’ll save roughly $600,000 in the first full year of working together.”
ITS Logistics provides national omnichannel distribution and fulfillment services to 95% of the U.S. population within a two-day delivery timeframe. To read the entire case study and learn more about additional ways ITS was able to reduce accessorial fees and increase savings for AHF, visit ITS Logistics.
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