YRC North American Transportation President and CEO Mike Smid told LM in an interview that these savings will come from various sources. One being consolidating the number of facilities it operates out of from 650 to roughly 450, as it combines capacity in existing facilities as part of YRCW’s “one network, one operation” approach with this integration. Another area where savings will come from, said Smid, is local pickup and delivery handling.
“As is stands right now, we operate two completely different pickup and delivery networks in every metropolitan area of the United States,” said Smid. “By consolidating and increasing the volume that you put through one [integrated] operation, there are a series of efficiencies that are attached to that and a lot of wasted capacity gets eliminated in the process.”
And connection between cities as YRCW begins to consolidate its delivering facilities and further consolidate its distribution functions will result in efficiencies that occur between a distribution facility and an end of the line facility, in terms of balance, timing, volume, and flow begins to increase, said Smid. He added this provides an opportunity to reduce excess or wasted capacity on a regular basis.
“As is stands right now, we operate two completely different pickup and delivery networks in every metropolitan area of the United States,” said Smid. “By consolidating and increasing the volume that you put through one [integrated] operation, there are a series of efficiencies that are attached to that and a lot of wasted capacity gets eliminated in the process.”
And connection between cities as YRCW begins to consolidate its delivering facilities and further consolidate its distribution functions will result in efficiencies that occur between a distribution facility and an end of the line facility, in terms of balance, timing, volume, and flow begins to increase, said Smid. He added this provides an opportunity to reduce excess or wasted capacity on a regular basis.