Toshiba achieved a 99.3% damage-free-shipment rate while reducing costs.
Here’s how.

In business for more than 20 years, Toshiba America Business Solutions develops new and better ways to deliver ideas and information. Its multifunction printers (MFPs), label and receipt printers and digital signage empower businesses across the United States and Latin America.

For years, Toshiba shipped sensitive electronics via LTL, which resulted in significantly high rates of product damage. In the interest of lowering damage rates, the company increased its use of truckload (TL) but paid exorbitant costs for under-utilized space. Unsatisfied with traditional shipping modes, Toshiba’s Senior Manager of Transportation and Fleet Services Al Garcia sought a cost-effective solution that would keep damage- prone goods intact with minimal touchpoints. The company tested Flock Freight’s STL solution in January 2021.

“Delivering the highest levels of quality and consistency to our clients is core to our business, which is why Toshiba made the shift to Flock Freight® as it enabled us to improve shipment success rates while simultaneously reducing costs.”

After this trial, Toshiba realized FlockDirect, Flock Freight’s terminal free STL solution, lives up to its promise of truckload-quality service for a lower price.

When customers place orders, Toshiba ships the corresponding products to resellers across the nation, who receive palletized freight, conduct product tests and oversee final-mile delivery using company-owned trucks. Before discovering shared truckload, Toshiba sent most of its products to dealerships via LTL.

The company’s machines, which often consist of fragile materials like glass and optics, cost a lot to replace. To Toshiba’s dismay, LTL’s high damage rates made replacements a common occurrence.

For damaged products, Toshiba paid for additional unnecessary expenses such as:

• Return shipping.
• Repairs, when possible.

If repairs not possible*:

• Storing, then shipping the damaged product to a scrap facility.
• A scrap facility to dismantle and dispose of the damaged product.
• Entirely new product pulled from inventory.
• Shipping the replacement product after filing a freight claim.

*Full replacements were necessary 75% of the time.

In search of lower damage rates, Toshiba shipped with as many LTL carriers as possible, but with no consistent success.

Beyond damage, LTL presented Toshiba with other challenges. Trans-loading resulted in split shipments (e.g., an MFP arriving without accessories) thereby decreasing customer satisfaction. LTL also delayed shipments for Toshiba, an issue that the pandemic-induced supply chain gridlock only exacerbated. Furthermore, LTL’s shrinking linear-foot and cubic-capacity cutoffs became increasingly difficult to manage. When Toshiba surpassed the cutoffs, costs exceeded those of TL shipping (a TL fee plus a penalty fee). Inspection fees, combined with strictly enforced accessorials, caused Toshiba’s LTL freight costs to spike. 

“I’ve hired many companies, and Flock Freight is one of the easiest ones I’ve ever onboarded. The ease of implementing our partnership and quickly getting to work stood out to me. For this, I give kudos to the Flock Freight team. They’re surpassing our expectations.”

Toshiba reached a tipping point with traditional modes and officially partnered with Flock Freight in May 2021 upon learning more about the cost-effectiveness of shared truckload shipping. On top of improved service performance, Toshiba found onboarding Flock Freight and hitting the ground running with shipments almost effortless.

“With Flock Freight, my team’s questions receive prompt replies. With other providers, it’s easy to feel like you’re just an account number, but Flock Freight has a customer-first mindset that fosters strong interpersonal relationships with its shippers.”

Toshiba America Business Solutions (TABS) is a workplace solutions provider delivering an extensive portfolio of industry-recognized workflow and document management products for businesses of all sizes across the United States, Mexico, and Central and South America. TABS supports the diverse needs of today’s professionals through award-winning eSTUDIO™ multifunction printers, label and receipt printers, digital signage, managed print services and cloud solutions. Toshiba continuously focuses on the clients and communities it serves, is committed to sustainability and is recognized as a Wall Street Journal Top 100 Sustainable Company. To learn more, please visit business.toshiba.com.