Illustrative Case Study

Repositioning an underutilized tractor-trailer to reduce outside freight spend.

This case study reflects the type of operational and financial analysis H3 can perform. Figures are presented as an illustrative example and should be replaced with approved client data before public use.

Outside carrier spend at target site$313,000Annual spend reviewed
EngagementFleet Utilization & Asset DeploymentClient TypeIndustrial Equipment CompanyObjectiveReduce outside freight expense

The challenge

A full-size tractor and 48-foot flatbed were operating at a location with inconsistent demand. At the same time, another company site was purchasing significant outside carrier capacity for moves that could potentially be handled with internal equipment.

The analysis

H3’s approach compared historical truck activity, mileage, trips, utilization, maintenance exposure, driver cost, expected demand at the target site, and current outside carrier spend.

01

Utilization

Reviewed trip frequency, loaded miles, empty miles, idle periods, and consistency of demand.

02

Economics

Compared fully loaded internal operating cost against expected outsourced transportation cost.

03

Deployment

Evaluated whether relocation would create enough productive work to justify the move.

04

Risk

Considered maintenance, driver availability, backhaul potential, and operational continuity.

The recommendation

The analysis supported moving the asset only if the receiving site could convert a meaningful share of the outside carrier volume into consistent internal utilization. The recommendation included a pilot period, minimum weekly utilization targets, cost-per-mile thresholds, and a formal post-transfer review.

Key decision principle

Move the truck only when the receiving site has enough repeatable demand to absorb fixed ownership and driver costs while displacing outside freight at a lower total cost.

The result

The client gained a defensible decision framework instead of relying on assumptions. Leadership could clearly see the conditions required for relocation to create value and the KPIs needed to confirm success. 90% of outsourced freight costs were recuperated by redistributing the truck to another site, reducing outsourced freight costs by $281,700.

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