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

Noted technology company Toshiba America Business Solutions is cutting costs and increasing customer satisfaction by switching from less-than-truckload (LTL) to shared truckload (STL).

After Toshiba’s LTL freight started incurring damage, the company knew its next freight solution needed to keep product touchpoints to a minimum. By upgrading to Flock Freight, Toshiba cut its damage rate in half, to less than one percent.

Partnership at a glance:

Partner since
January 2021
Freight solution
FlockDirect™
Average cost of goods
$2,000-$15,000

The search for a cost-efficient shipping solution

Problems and solutions

Toshiba’s efficient ship-to-order model results in small shipments that seldom fill a truck, pushing the organization into the LTL realm. Trans-loading in the hub-and-spoke system damaged some of Toshiba’s valuable machine shipments, significantly impacting the company’s bottom line. Toshiba’s FlockDirect freight — which avoids terminals and remains on the truck from pickup to delivery — ships damage-free 99.3 percent of the time. With fewer machines to repair, replace and reship, Toshiba’s shipping operations have become timelier and cost-efficient while also enhancing the overall customer experience.

0.7 percent damage rate with flockdirect

“If Toshiba could ship every load with Flock Freight, we would.”

Although LTL rates are relatively inexpensive, the mode’s bottom-line costs quickly added up. Whether its shipments experienced reweighs, exceeded linear-foot cutoffs or required other services, the company faced numerous extra costs beyond shipping rates. Accessorial fees, which cost the average enterprise LTL shipper $880,384 in 2021, significantly increased Toshiba’s spending.

To keep its goods damage free, Toshiba pivoted to TL service mode. Though its products incurred less damage and avoided accessorials, the company found that it was paying for deck space it did not use. With FlockDirect, Toshiba pays only for the truck space it needs, and Flock Freight fills the remaining trailer capacity with other compatible shipments.

The journey to FlockDirect

Toshiba’s Flock Freight experience

Customer service is paramount at Toshiba; that’s why Al is especially delighted to be on the receiving end of excellent support.

As part of its customer-centric approach, Flock Freight presents Toshiba with periodic reports, which give Al transparent overviews of their performance.

toshiba cost savings with flockdirect

“Flock Freight provides me with periodic reporting. The quarterly business reviews they present me with are relevant, and the cost savings along with the on-time performance are top-notch.”

Now that Toshiba has finally found a mode with the best of both worlds — truckload-quality service at a reasonable price — it aims to increase the amount of freight it ships via FlockDirect.

— Quotes from Al Garcia, GLS Senior Manager of Transportation and Fleet Services at Toshiba America Business Solutions

Follow Toshiba’s footsteps and see the FlockDirect difference for yourself.

About Toshiba America Business Solutions