Growth is typically seen as positive for any business, but how can companies ensure operational efficiency keeps pace with expansion to avoid being hampered by logistics bottlenecks? The experience of discount retailer Bargain Hunt might offer valuable insights. Through a strategic partnership with Averitt Express, the Tennessee-based company implemented crucial transportation and distribution changes that laid a solid foundation for future growth.
The Growing Pains: Limitations of the Old Model
Before its expansion over the past two years, Bargain Hunt's retail distribution model worked well when store numbers were smaller and concentrated around Nashville. As Steve Silverman, Senior Vice President of Supply Chain at Bargain Hunt explained: "Our previous dedicated supply solution had all assets (drivers and power units) located at our Antioch distribution center. The contractual rate structure included leased equipment plus mileage and fuel surcharges. While effective initially, this approach became neither scalable nor economical as we expanded our store count and geographic footprint."
Silverman noted that the solution only provided drop-off service, requiring additional trailers and distracting store personnel from their primary merchandise and customer service responsibilities. With assets centralized in Antioch but needing to serve stores as far as Atlanta, North Carolina, and Cincinnati, asset utilization dropped to about ten hours daily.
"When I joined Bargain Hunt two years ago, our supply chain team needed to better serve our stores," Silverman recalled. "The delivery method was part of the problem. We wanted drivers to unload at stores, which wasn't possible with the drop-off model."
Another issue involved Bargain Hunt's trailer pool of over 270 trailers and about 20 tractors, which Silverman described as financially "nonsensical." Each new store required purchasing several trailers, and low asset utilization meant needing more tractors. Additionally, the company aimed for Sunday-Thursday deliveries to ensure stores were fully stocked for weekends.
"The model simply didn't work," Silverman stated. "It wasn't scalable, efficient, economical, or service-oriented for our stores. We needed change."
The Transformation: Seeking a Better Solution
This realization marked the beginning of Bargain Hunt's transformation journey. A key aspect involved revising delivery methods to include driver unloading, requiring new assets like roll containers and totes to better organize merchandise for faster shelf stocking. The goal was reducing truck-to-shelf time from 50-65 hours to under 15 hours.
This effort led to Bargain Hunt's partnership with Averitt Express. "We needed asset recovery solutions and spoke with several providers near our store clusters," Silverman explained. "We also wanted to serve our merchants with backhaul opportunities."
Silverman chose Averitt based on existing relationships and their customer-focused approach, efficient loading/unloading processes, and alignment of their less-than-truckload (LTL) terminals with Bargain Hunt's store locations. "Averitt offered both LTL capabilities and dedicated linehaul services - the best of both worlds from one provider," he noted.
The collaboration began in early 2019 at a Cincinnati terminal, followed by two Atlanta-area locations. "It took about three months to fully operationalize these terminals, addressing system integration, tendering processes, backhaul coordination, asset recovery, and invoicing," Silverman said. "After resolving these issues, we opened additional terminals in June."
The Results: Enhanced Efficiency and Reduced Costs
The partnership delivered significant benefits. Bargain Hunt reduced its dedicated tractor fleet from 26 to 16 units and trailer count from 270 to under 110, while cutting total mileage by 20%.
"Trailers move at night for linehaul, then daytime drivers handle local store deliveries, asset recovery, and backhauls before night drivers return to Antioch," Silverman described. This approach doubled tractor utilization while improving store service and capturing 86% of eligible backhaul loads.
The changes also boosted driver satisfaction by eliminating sleeper cabs and ensuring drivers sleep at home nightly. "This aids retention in a tight driver market," Silverman noted. "Previously during peak seasons, we lacked internal capacity and had to sacrifice store service by using third-party carriers."
Technology integration proved another success factor. Where manual processes and spreadsheets once caused delays, an integrated Transportation Management System (TMS) now provides visibility and real-time data exchange with Averitt's systems. Bargain Hunt's bidding system attaches each journey segment to general ledger cost centers for accurate accounting.
With multiple terminals, Averitt provides two-hour delivery windows for all stores. "We established standard truck schedules - peak and non-peak - so stores can better plan labor knowing exactly when deliveries arrive," Silverman explained.
Through this strategic partnership, Bargain Hunt not only resolved supply chain constraints but achieved dramatic efficiency gains and cost reductions, clearing obstacles for future expansion while allowing greater focus on core business growth.