Hu-Friedy: Evaluating Transportation Alternatives

In August 2016, the global procurement manager at Hu-Friedy Mfg. Co., LLC, a large U.S. dental equipment manufacturer, realized that materials were being transported between suppliers and production facilities without a consistent strategy—potentially costing the company thousands of dollars each year. To evaluate the company's transportation needs, the manager considered a range of alternatives, including buying or leasing a truck or hiring a third-party logistics (3PL) provider to manage the transportation. To complete his analysis, the manager needed to develop a new set of routes for pickups and deliveries, evaluate the costs associated with owning or leasing a truck, determine the costs of a 3PL provider, and ultimately determine the course of action that would have the most impact on transportation costs with the least impact on daily operations.