How Raymour & Flanigan's started saving $15k per week on drayage costs with Gnosis

Published on
Aug 16, 2022
Written by
Michael Rentz
Read time
5 Minutes

Michael Rentz

Chief Revenue Officer

Raymour & Flanigan is an American furniture retail chain, based in the Northeastern United States. They are the largest furniture retailer in the Northeast, and the seventh largest in the United States.

At Raymour & Flanigan, an American furniture retail chain, the Global Logistics Team is tasked with optimizing the company’s supply chain from end-to-end.  This usually involves activities like eliminating excess spend, increasing operational efficiencies, and increasing visibility for the organization.   Since there are so many moving parts and different third-parties contributing to the supply chain, there are sometimes too many things to handle at once. However, this means there are also many opportunities to redefine their day-to-day with technology.

The best opportunity came with how Raymour & Flanigan’s logistics team was currently managing their drayage (the trucking of containers from the port to their distribution centers).  Before Gnosis, Raymour & Flanigan had outsourced their drayage needs to a third-party provider.  This was expensive and did not give Andrew “Andy” Sauer (Raymour & Flanigan’s Global Logistics Manager) the visibility into the process that he needed. 

Given the complexity and size of Raymour & Flanigan’s supply chain (roughly 12,000 containers/year), managing the scheduling portion of their supply chain is no easy lift.  At any given time, Raymour needs 10+ drayage carriers moving cargo from 4-5 different terminals within the Port of New York, to 13-14 different distribution centers.  To further constrain the problem, the inventory levels at each distribution center and the need for new inventory was constantly fluctuating due to variable customer demand.  Add in the fluctuating drayage rates for each of the truckers, and it became nearly impossible for Sauer and his team to manage all of these moving parts in-house.

Then, Sauer discovered Gnosis Freight.  Although Sauer was well aware of the many technology players in the supply chain and logistics space, he had a few bad experiences with other providers.  This problem mainly stemmed from the other providers not being able to customize their solutions to meet the needs of the customer - like Raymour & Flanigan.  Gnosis Freight was able to provide these customizable solutions through their customer portal that facilitated scheduling through their proprietary “Drayage Optimizer” solution.  In regards to the customization ability of Gnosis, “It was eye opening to have that hands-on ability,” said Sauer, “as opposed to the other cookie-cutter, out-of-the-box solutions” that he had previously encountered.

Gnosis allowed Sauer and the team to bring their drayage operations completely in-house while saving them $15k/week on average.  The Gnosis Drayage Optimizer works by giving Sauer and his supply chain team visibility into inventory on the water and facilitating the allocation of the subsequent inventory to respective distribution centers. Once completed, this creates a giant matrix of containers that need to be delivered, an optimization problem that Gnosis Freight solves with machine learning and optimization based on constraints set by Sauer and his team. The algorithms optimize for efficiency and reduced costs across the board.

“Not only does Gnosis Freight facilitate much more cost effective means to manage scheduling and drayage seamlessly with little effort,” Sauer says, it “opened completely new doors and avenues as a company.”  It allowed Raymour & Flanigan to “do more with less,” and according to Sauer, facilitated “endless possibilities.”

Gnosis Freight prides itself on helping logistics companies take back control of their supply chain.  The Gnosis Freight platform helps people and companies make better decisions together, in real-time, to effectively manage their supply chains.  From booking, to tracking, to scheduling, and to optimizing, Gnosis Freight can play a critical role in eliminating headaches and unnecessary costs while giving customers the keys to robust and lasting revenue growth in the future.