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Case Studies > United Pipe & Steel Corp. Leverages Omnitracs Solutions to Streamline Routing and Achieve Cost Savings

United Pipe & Steel Corp. Leverages Omnitracs Solutions to Streamline Routing and Achieve Cost Savings

Technology Category
  • Analytics & Modeling - Predictive Analytics
  • Application Infrastructure & Middleware - Data Exchange & Integration
  • Functional Applications - Fleet Management Systems (FMS)
  • Functional Applications - Remote Monitoring & Control Systems
Applicable Industries
  • Transportation
Applicable Functions
  • Logistics & Transportation
  • Warehouse & Inventory Management
Use Cases
  • Fleet Management
  • Predictive Maintenance
  • Real-Time Location System (RTLS)
  • Remote Asset Management
  • Supply Chain Visibility
Services
  • Software Design & Engineering Services
  • System Integration
  • Training
The Challenge
Manual routing led to inefficiencies and chaos, especially with the turnover of distribution center (DC) managers. The paper-based system relied heavily on 'tribal knowledge,' which was lost when managers left, causing significant disruptions. The company also faced high fuel costs and inefficiencies due to the manual routing process. United Pipe needed a solution to capture this tribal knowledge, reduce manual processes, and optimize routing to save on fuel and improve efficiency.
About The Customer
United Pipe & Steel Corp., founded in 1980 by David Cohen with just $5,000, has grown to become the largest master distributor of pipe and tube products in the United States. Headquartered in Ipswich, Massachusetts, the company operates 12 distribution centers across the country, offering a wide selection of steel, copper, and plastic pipe products. United Pipe serves various segments of the industry, advising customers on the commodities market and ensuring timely deliveries. The company prides itself on its motto, 'United with our customers, united with our employees, united with our vendors,' which is evident in their operations and customer service.
The Solution
United Pipe implemented Omnitracs' routing, mobile dispatching, and compliance solutions to address their challenges. The Omnitracs solution provided cost-efficient routing, real-time tracking, proactive customer notifications, and compliance with HOS, DVIR, and IFTA regulations. The solution also offered powerful analysis tools to optimize routes and ensure compliance. By partnering with Omnitracs, United Pipe launched the solution across their 12 distribution centers in just five months. The implementation allowed United Pipe to capture tribal knowledge, streamline routing processes, and enhance customer service through real-time delivery tracking and mobile notifications.
Operational Impact
  • United Pipe eliminated paper-based routing and optimized truck loading based on product compatibility, reducing the risk of damage.
  • The company enhanced customer experience with real-time delivery tracking and automatic notifications, reducing the volume of inbound calls and improving communication.
  • United Pipe gained the ability to track key performance indicators (KPIs) and incentivize drivers and managers, leading to better performance and management.
Quantitative Benefit
  • Decreased average cost per mile from $1.98 to $1.49, resulting in a cost savings of over $2 million.
  • Grew from a 250-million-dollar company to a 300-million-dollar company since the end of 2013.

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