Haines, Jones & Cadbury Used Shockwatch Labels To Cut Shipping Damage Claims By 65%
Summary: Haines, Jones & Cadbury (HJC) is a specialty subsidiary of Hajoca, the largest privately held wholesale distributor of plumbing, heating and industrial supplies in the United States. Using third-party freight carriers, HJC had no real way to monitor or measure handling practices once a shipment was en route, creating a blind spot in its quality efforts. See how HJC was able to bring accountability into their supply chain and reduce damage claims by 65%.
Product Solution: ShockWatch Label
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HJC protects customer orders & cuts freight claims: ShockWatch Label
Haines, Jones & Cadbury protects customer orders and satisfaction while cutting freight claims by 65%.
About the Customer
Haines, Jones & Cadbury (HJC) is a specialty subsidiary of Hajoca, the largest privately held wholesale distributor of plumbing, heating and industrial supplies in the United States. HJC was founded in 2002 to serve the unique needs of large national accounts ranging from Wal-Mart® to Burger King® – customers who need turn-key supply and management of pre-negotiated construction materials across multiple locations. One of HJC’s advantages is the deep array of logistical services it provides to its customers, from ordering and scheduling deliveries to managing warranties. Ultimately, however, the satisfaction of HJC’s national clients rests on the company’s ability to deliver the right materials on time and in perfect condition – every time. That’s why HJC is so focused on stringent quality controls, from manually-verified barcoding to photographing and in some cases videoing pallets before and after wrapping for shipment
Customer Challenge
The challenge, however, was in ensuring meticulous handling of shipments after they leave the distribution center. Using third-party freight carriers, HJC had no real way to monitor or measure handling practices once a shipment was en route, creating a blind spot in its quality efforts. In 2010, however, that changed – when Distribution Center Manager Steve Walls noticed some colorful impact indicators being used on a crash test dummy in an episode of Discovery Channel™’s Myth Busters™.
Although the crash test dummy affixed with the ShockWatch indicators didn’t fare so well on the show, the program gave Walls an idea that would end up saving his company hundreds of thousands of dollars in freight claims each year.
HJC’s ShockWatch System
Market: Specialty construction trade contractor Challenge: Lack of control after shipments leave the distribution center ShockWatch Labels are affixed to every pallet, providing high impact sensitivity and visual indication of mishandling, even from a distance. ShockWatch 100G standard Labels are affixed to all small parcels. Alert tape is affixed to all pallets and parcels to provide a visual warning against mishandling.
Results: HJC reduced freight claims from $300,000 down to $86,000.
Door to Door Protection
With delivery routes averaging 500 miles and some as long as 2,000 miles, a lot can happen to an HJC shipment between the loading time and delivery.
“Operating our own fleet isn’t an option for our business,” says Walls. “So we needed a way to get our freight partners as engaged and accountable in careful handling as we are. ShockWatch indicators were an easy solution.”
With the consultation and approval of his General Manager, Walls initiated a trial of ShockWatch impact indicators. After just a month, HJC made indicators mandatory across all of its four distribution centers, along with ShockWatch alert tape and ShockWatch 100G impact indicator labels for small parcels. Today, every HJC shipment has ShockWatch impact indicators on board.
“When we decided to make this investment in ShockWatch technology, we also instituted a complete review of our shipping processes,” adds Walls. “We switched to a thicker pallet wrap and increased our use of corner guards and extra banding. But it’s the ShockWatch impact indicators and alert tape that provide an actual visual reminder to every driver and fork lift operator to slow down and do things right.”
Great Results in Savings and Service
After one year of using ShockWatch products and bolstering its packing and shipping procedures, HJC slashed freight claims from $300,000 down to $86,000, a 65% savings.
Walls reports that customer response to the new process has been overwhelmingly positive, and customers willingly participate in the program by checking indicators and reporting activations. Remarkably, HJC’s carrier partners are on board as well, in part because the program focuses on prevention, not finger-pointing. “Our goal is to get customers their orders in great condition and eliminate delays and headaches for them,” says Walls. “ShockWatch products keep that objective front and center.”
Down the Road
Because HJC’s ShockWatch program has been so successful, it is considering requiring similar measures from its own suppliers on inbound deliveries. The company is also considering ShockWatch temperature indicators to protect its shipments that contain cold-sensitive spray adhesives.
SpotSee impact, tilt and cold chain solutions prevent, detect and record mishandling of fragile, sensitive, or calibrated products during transportation or storage. ShockWatch indicators are available in multiple footprints and a wide range of sensitivities.
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