Sheetz Takes Responsibility for Distribution

Sheetz employees still remember the day that they took over the delivery of products to their convenience stores. It may have taken 17 hours to load that first truck, but the accomplishment felt by everyone when the driver pulled away and started the delivery is burned into their memory.

Sheetz is headquartered in Altoona, Pennsylvania and distributes products to a perpetually growing chain of convenience stores from its 365,000 square foot warehouse. However, it was just a few years ago that they had outsourced their delivery operations to a third party.

Sheetz made a commitment to a $24 million distribution center. Since they were starting from scratch, Sheetz not only required an experienced transportation management team, but they also needed to hire everyone from warehouse staff to drivers. In addition to the state-of-the-art distribution center, Sheetz also acquired an entire fleet of trucks and delivery equipment.

Sheetz realized that taking over distribution also meant controlling transportation costs. The company needed a software package that would optimize daily routes, allow real-time tracking for route performance, and provide communication with the driver.

After researching various options, they selected solutions from UPS Logistics Technologies. John DiVito, director of transportation for Sheetz, was responsible for deciding which solution would best meet their needs. "We selected UPS Logistics Technologies because of their history and strength in the transportation industry. We knew they had the solution and the resources to support our needs."

With Roadnet, a daily routing and scheduling tool, Sheetz can route their deliveries in under 40 minutes. The Roadnet system works with their ERP system to quickly transfer daily orders. Once the routes are set, order picking begins in the warehouse and vehicles are loaded. Trucks leave the distribution center late in the afternoon so they can make their deliveries between 6 p.m. and 6 a.m., helping to ensure that peak business hours are not disrupted.

Sheetz also utilizes MobileCast from UPS Logistics Technologies. MobileCast allows real-time route information to be exchanged between the driver and dispatcher. Drivers are equipped with mobile computers allowing a driver to access the route plan, driver directions and individual orders with line item detail. Additionally, Sheetz uses Tripmaster onboard computers in conjunction with MobileCast to track DOT, fuel tax and engine performance data.

Employing UPS Logistics Technologies' software solutions, it took only three months for Sheetz to take full ownership of their routes -- and they reduced their load time to approximately 30 minutes per truck. Sheetz has been very pleased with their delivery operations, and attributes much of their success to Roadnet and MobileCast. Key results include:

  • Achieved 99.4% order fulfillment
  • Exceeded 98% on-time delivery
  • Realized 4% reduction of total routes
  • Reduced driver hours by 3 hours per week

To demonstrate the power of Roadnet prior to a re-route, Sheetz had been running 25 extra vehicles to accommodate heavy volume. After re-routing by Roadnet, Sheetz was able to run even more volume without adding another vehicle, according to DiVito. Today, the company runs vehicles at approximately 85-95% capacity. This gives them the flexibility to incorporate heavy order days, usually without adding additional vehicles to a route.

"UPS Logistics Technologies has an amazing support network. From sales to product development to customer service, their team really pulls together to meet the needs of our organization," stated DiVito.

Quick Facts

Location:
Claysburg, PA

Industry:
Convenience & Gas

Service Area:
- Pennsylvania
- Maryland
- Virginia
- West Virginia
- North Carolina
- Ohio

Vehicles
- 42 tractors
- 45 trailers

Solutions
- Roadnet®
- MobileCast®

Complementary Products
- Advanced Foodsystems ERP
- Tripmaster Onboard Computers

Results
- Achieved 99.4% order fulfillment
- Exceeded 98% on-time delivery
- Realized 4% reduction of total routes
- Reduced driver hours by 3 hours per week


A printable version of this document is also available.

Sheetz PDF