Copy of Automotive Case Study MODE Global

MODE Achieves Near-Perfect Scorecard for Big-3 Automaker

SOLUTIONS THAT SHIP A HIGH-PERFORMANCE RELATIONSHIP MODE’s customer is a leading U.S. automaker that sought greater control over parts delivery to its assembly plants. Parts delays that halt car production cost big money. As a point of reference, the company lost $1.7B during the six weeks of the 2023 UAW strike. Accordingly, the manufacturer has stringent on-time standards and a strong preference for asset-based carriers. MODE proved the advantages of third-party logistics by leveraging its network of 100,000 over-the-road (OTR) carriers and a road-tested customer service team.

Within a few short years, MODE’s just-in-time (JIT) model delivered near-perfect scorecard performance and a 700% increase in lane assignments.

CHALLENGES Parts from 100+ suppliers had to be delivered JIT to six plants Automaker’s scorecard requires 98% on-time delivery Regular equipment breakdowns created chaotic all-hands responses

SOLUTIONS Network of 100,000 OTR carriers and over 3M pieces of equipment ELD tracking of 85% of contracted carrier’s equipment Interchange agreements on 100% of drop trailer lanes Established recovery operations in all lanes serving assembly plants

RESULTS 900 – 1,000 loads managed per week 99%+ scorecard rating for 12 months straight 80% reduction in critical delivery failures $600,000 saved through recovery program in first year 700% increase in assigned lanes within six months

© 2024 MODE Global, LLC. All Rights Reserved.

www.modeglobal.com

SUPPLY CHAIN CHALLENGES The automaker operates a high-touch, high-stress supply chain. Parts from many suppliers come into the manufacturer’s 6+ plants. Deliveries need to be at facilities within 12 to 24 hours, leaving little room for delays.

The automaker sought streamlined, centralized solutions to mitigate risk.

Prior carriers fell short of scorecard standards. The automaker’s performance standards are very high because time-sensitive cargo deliveries often feed a live production line. Carriers’ poor performance has a high cost in this competitive industry.

Using asset-based carriers brought limitations. The automaker had concerns about third-party logistics (3PLs) firms, believing asset-based carriers provided better control and more streamlined operations. This strategy prevented the automaker from choosing the best carrier for the lane or benefiting from rate fluctuations in lanes.

Breakdowns created chaos. Equipment failures of trucks and trailers en route to manufacturing plants caused panic because of the potential threat to production. With no formal network-wide recovery program in place, the response was typically chaotic and not timely – and the automaker had two or three breakdowns a month.

WHY MODE MODE team members bring years of experience in automotive logistics and customer service. These qualifications were amplified by MODE’s unrivaled network of power carriers in major lanes serving the automaker’s plants. MODE leveraged these relationships to provide agile, high-touch solutions that supported the automaker’s need for reliability and visibility into their parts delivery.

MODE’S SOLUTION SET Truckload Capacity from an Unrivaled Carrier Network MODE’s relationships with its carrier network connects the automaker with over 3 million pieces of equipment and the capacity they need. MODE’s responsibilities for the automaker grew from six lanes to 50 in six months.

MODE also added almost 10,000 loads in 2024 for a total of more than 44,000 loads a year.

Continuous and Concerted Scorecard Improvement MODE is the automaker’s only carrier to achieve a 99%+ scorecard rating for 12 consecutive months. From the onset, MODE has aimed to exceed the automaker's standard scorecard rating of 98%. A massive internal campaign dubbed “Save Our Scorecard” featuring SOS swag and weekly performance reviews supported the effort and energized employees at MODE.

© 2024 MODE Global LLC. All Rights Reserved.

www.modeglobal.com

MODE’S SOLUTION SET (CONT) Dedicated Freight through Longstanding Carrier Relationships Through MODE, the same carriers – and many of the same drivers – have hauled the automaker’s freight for years.

MODE’s service is operated by dedicated carriers and drivers who know the suppliers, lanes, dockworkers and MODE’s lane reps ensuring everyone is fully invested in the vision and supports the level of service required.

“I'VE ALWAYS PUT A PREMIUM ON COMMUNICATION AND TRANSPARENCY AMONG OUR CARRIER PARTNERS, AND MODE NEVER FAILS TO DELIVER.” - Regional Transportation Manager at Automaker

Established Resource Recovery Network on Major Routes MODE established relationships with tow companies on major routes to enable a tow or fast repair that prevents delivery delays. MODE’s after-hours teams can arrange recovery service immediately without searching and negotiating. By eliminating inefficiencies and delays, the program saves an estimated $600,000 per year.

Interchange Solutions Streamline Carrier Operations MODE created an interchange program that leverages the strengths of a multi-carrier network while coordinating the efforts of individual carriers. MODE provides the automaker with one point of contact. And, carriers within MODE’s network can pick up and haul each other’s trailers and backhaul empty racks to suppliers in a continuous loop.

SOLUTIONS BY THE NUMBERS 950

700%

$600,000

Loads hauled on average every week

Increase in lanes in six months

Saved annually through resource recovery program

99%+ Scorecard rating for 12 months straight

© 2024 MODE Global LLC. All Rights Reserved.

102 Suppliers’ parts delivered JIT to assembly lines

www.modeglobal.com

© 2024 MODE Global LLC. All Rights Reserved.

14785 Preston Road, Ste 850, Dallas, TX 75254

www.modeglobal.com