ST. LOUIS, MO and GREEN BAY, Wisc. - October 17, 2003 - XTRA Lease announced today it has been selected by Schneider Logistics to provide 1,200 trailers in a first-of-its-kind partnership enabling Schneider Logistics deliver cost savings to one of its major customers.
The alliance is part of a streamlined team approach designed by Schneider Logisticsa Lead Logistics Provider (LLP), for General Motors Service Parts Organization (GMSPO)a parts manufacturing division of General Motors based in Grand Blanc, MI, and one of Schneider Logistics customers.
Schneider Logistics will use XTRA Lease trailers to deliver GM auto parts to processing centers and to auto dealers located throughout Michigan and in Toledo, OH.
By establishing a small team of long-term, single-source providers that includes XTRA Lease, Schneider Logistics expects to generate cost savings of at least $3-4 million per year for GMSPO.
XTRA Lease will provide Schneider Logistics 1,000 dry van trailers in a multi-year lease and an additional 200 trailers during an initial period.
As part of the deal, Schneider Logistics will also take on 500 XTRA Lease rental trailers, which will be pared back as efficiencies are gained. XTRA Lease will begin delivering trailers on October 6.
XTRA Lease joins Penske Logistics, who will provide truck carrier services to Schneider Logistics in this innovative arrangement. Often, LLPs contract with multiple companies to securing trailers and capacity. With XTRA Lease and Penske as single-source providers, Schneider Logistics will minimize the number of vendors and improve upon its already outstanding service the GMSPO account, enabling GMSPO to realize significant savings.
"Were very excited to be part of this partnership," said Bill Franz, president of XTRA Lease. "This milestone agreement with Schneider Logistics enables XTRA Lease to play a strategic role in producing supply chain efficiencies. Our ability to provide cost-saving benefits is a major reason companies turn to us. Our commitment to Schneider Logistics enables them to gain supply chain efficiencies along with single-source care needed to satisfy their clients needs. Working with XTRA Lease, Schneider Logistics will deliver a dynamic solution to GM."
Previously, Schneider employed up to 10 carriers using approximately 1,700 trailers to service GMSPO. By choosing XTRA Lease as its sole trailer provider, Schneider expects to reduce its trailer fleet size to 1,000 within three years.
"Were operating in a very competitive environment, and we aggressively sought a solution that would help us improve asset management to control costs," said Steve Kowalkowski, vice president, automotive for Schneider Logistics. "XTRA Lease showed ability in our planning process to understand exactly what we needed to do. Ultimately, XTRA Lease was able to provide an on-demand solution that matched our business needs, along with dedicated service support to back it up."
XTRA Lease will deliver 500 trailers by October 31, 2003, and will continue delivering 250 new trailers a month until the 1,200 order is complete.