Importance of Memphis, TN: Logistics Advantages

BNSF and Barrett Collaborate to Cut Shipper Costs, Create Efficiencies in Memphis, TN

Reciprocal Switching and Doorstep Programs Creates Logistics Advantage for Customers

What is Reciprocal Switching and how is it competitive?

Reciprocal Switching is the exchange of freight between railroads, where rail cars are switched from one railway to another without incurring an additional fee to do so.  This allows freight to be shipped from one origin railroad to a different destination railroad without incurring a switching fee.    A 3PL that can offer reciprocal switching brings measurable value at no additional cost to participating shippers.

Barrett Distribution’s comprehensive reciprocal switching program in Memphis, TN is a great example, creating a competitive logistics tool.  Barrett offers shippers the ability to ship into Memphis from any of the five Class 1 railroads without incurring additional switching fees.  This service saves shippers approximately $500 per boxcar over competitive 3PL warehouses.

The Doorstep Program

For companies without railway access, the BNSF offers its popular Doorstep Program, which creates numerous advantages.  A plant can load a boxcar at origin and ship to the Transload Center, which is any warehouse that is approved for the BNSF Doorstep program.  (Barrett is the member representing Memphis, TN).  The warehouse crossdocks & stores the goods until they are shipped via truck to the end customer.  This is less expensive than shipping truckloads straight to the customer, allows for flexible delivery schedules, and allows customers up to 30 days free storage.  BNSF utilizes multiple warehouses in the program so they can be flexible, timely and cost effective.