Schneider National, Inc. (SNDR): Business Model Canvas [11-2024 Updated]

Discover how Schneider National, Inc. (SNDR) has crafted a robust and dynamic business model that drives its success in the freight transportation and logistics industry. By leveraging key partnerships and innovative technology, Schneider delivers reliable and efficient services tailored to diverse customer needs. From extensive fleet management to dedicated customer relationships, this business model canvas highlights the essential components that position Schneider as a leader in logistics solutions. Dive into the details below to uncover what makes Schneider's approach uniquely effective.

Schneider National, Inc. (SNDR) - Business Model: Key Partnerships

Rail providers for intermodal services

Schneider National partners with several rail providers to enhance its intermodal transportation capabilities. In the nine months ended September 30, 2024, Schneider's intermodal segment handled approximately 309,927 orders, utilizing a fleet of 26,603 containers and 1,417 trucks. The revenue per order for this segment was $2,452, reflecting a decrease from the previous year due to market conditions.

Third-party logistics providers

Collaboration with third-party logistics (3PL) providers is essential for Schneider's operational efficiency. The Logistics segment saw revenues decrease by $94.2 million, approximately 9%, in the nine months ended September 30, 2024, largely due to reduced revenue per order and brokerage volumes. The operating ratio for the Logistics segment was reported at 97.5%.

Equipment manufacturers and dealers

Schneider National's operational effectiveness relies on strong relationships with equipment manufacturers and dealers. In the third quarter of 2024, the company reported total operating expenses of $1,272.6 million, with significant investments in transportation equipment contributing to depreciation and amortization expenses of $101.9 million. The overall fleet included 47,257 trailers, highlighting the scale of their equipment partnerships.

Technology partners for logistics solutions

Technological advancements are pivotal for Schneider's logistics solutions. The company reported adjusted EBITDA of $143.8 million in the third quarter of 2024. Investments in technology partnerships are aimed at optimizing logistics operations, contributing to an adjusted operating ratio of 96.2%. Additionally, free cash flow for the third quarter was $113.4 million, signaling a robust financial position to invest in technological enhancements.

Partnership Type	Key Metrics	Financial Impact
Rail Providers	Orders: 309,927 Containers: 26,603 Trucks: 1,417	Revenue per order: $2,452
Third-party Logistics	Logistics Revenues: Decreased by $94.2 million (9%)	Operating Ratio: 97.5%
Equipment Manufacturers	Depreciation and Amortization: $101.9 million	Total Operating Expenses: $1,272.6 million
Technology Partners	Adjusted EBITDA: $143.8 million	Free Cash Flow: $113.4 million

Schneider National, Inc. (SNDR) - Business Model: Key Activities

Freight transportation and logistics services

Schneider National operates as a key player in freight transportation and logistics, reporting operating revenues of $1,315.7 million for the three months ended September 30, 2024, compared to $1,352.0 million for the same period in 2023. The revenues excluding fuel surcharge were $1,177.6 million in Q3 2024, slightly down from $1,179.4 million in Q3 2023.

Fleet maintenance and management

Fleet management is crucial for operational efficiency. Schneider National's fleet included an average of 10,397 trucks in Q3 2024, with a total of 47,257 trailers. The operating ratio for the Truckload segment was reported at 95.5% for Q3 2024, indicating a focus on managing operational costs effectively.

Customer relationship management

Customer relationship management is pivotal for Schneider's service delivery. The company reported net income available to common shareholders of $30.6 million for Q3 2024, a decrease from $35.6 million in Q3 2023. This decline highlights challenges in maintaining customer satisfaction amidst fluctuating market conditions.

Supply chain optimization

Supply chain optimization efforts have been reflected in the company's revenue performance. The Logistics segment saw revenues decrease by $94.2 million, approximately 9%, in the nine months ended September 30, 2024, due to reduced revenue per order and volume. The operating ratio for the Logistics segment was recorded at 97.5% for the same period.

Key Performance Indicators	Q3 2024	Q3 2023
Operating Revenues (in millions)	$1,315.7	$1,352.0
Revenues (excluding fuel surcharge, in millions)	$1,177.6	$1,179.4
Net Income (in millions)	$30.6	$35.6
Average Trucks	10,397	10,677
Total Trailers	47,257	47,007
Operating Ratio (Truckload)	95.5%	95.4%
Operating Ratio (Logistics)	97.5%	96.2%

Schneider National, Inc. (SNDR) - Business Model: Key Resources

Extensive fleet of trucks and trailers

As of September 30, 2024, Schneider National operates a fleet consisting of approximately 10,652 total trucks, which includes 9,083 company-owned trucks and 1,569 owner-operator trucks. The company also maintains a fleet of 47,257 trailers. In the nine months ended September 30, 2024, Truckload revenues (excluding fuel surcharge) amounted to $1,610.6 million, reflecting a slight increase from $1,605.0 million in the same period of 2023.

Network of logistics facilities

Schneider National has developed a comprehensive network of logistics facilities across the United States, enhancing its operational capabilities. The company reported logistics revenues (excluding fuel surcharge) of $957.4 million for the nine months ended September 30, 2024, compared to $1,051.6 million in the same period of 2023. This network supports efficient freight management and distribution, facilitating a broad range of logistics services.

Experienced workforce

The workforce at Schneider National is a critical resource, contributing to the company's operational efficiency. Salaries, wages, and benefits for the workforce increased by $51.5 million, or 5%, in the nine months ended September 30, 2024, largely due to the M&M acquisition. The company continually invests in training and development to maintain a skilled labor force capable of navigating the complexities of logistics and transportation.

Proprietary technology for tracking and management

Schneider National employs proprietary technology for tracking and management that enhances operational efficiency and customer service. This technology allows for real-time tracking of shipments, optimizing routes, and managing resources effectively. The company reported an adjusted EBITDA of $427.4 million for the nine months ended September 30, 2024, compared to $568.0 million in the same period of 2023. This technological investment is essential for maintaining competitive advantage in the logistics industry.

Key Resource	Details	Financial Impact
Fleet of Trucks and Trailers	10,652 total trucks, 47,257 trailers	Truckload revenues of $1,610.6 million (9M 2024)
Logistics Facilities	Comprehensive logistics network across the U.S.	Logistics revenues of $957.4 million (9M 2024)
Experienced Workforce	Increased salaries, wages, and benefits by $51.5 million (5%)	Supports operational efficiency and service quality
Proprietary Technology	Real-time tracking and resource management	Adjusted EBITDA of $427.4 million (9M 2024)

Schneider National, Inc. (SNDR) - Business Model: Value Propositions

Reliable and efficient transportation services

Schneider National, Inc. offers reliable transportation services with an operating revenue of $1,315.7 million for the third quarter of 2024, compared to $1,352.0 million in the same quarter of 2023, reflecting a slight decrease of approximately 3%.

The company reported a Truckload revenue of $532.2 million in Q3 2024, slightly down from $535.3 million in Q3 2023. The average revenue per truck per week was $3,971.

Comprehensive logistics solutions

Schneider provides a diverse range of logistics solutions, contributing to total logistics revenues of $313.7 million in Q3 2024, down from $326.0 million in Q3 2023. The operating ratio for logistics services was reported at 97.6%, indicating operational efficiency despite market fluctuations.

For the nine months ended September 30, 2024, logistics revenues (excluding fuel surcharge) decreased by 9% to $957.4 million compared to $1,051.6 million in the same period of 2023.

Customized freight solutions for diverse industries

Schneider National tailors its freight solutions to meet the specific needs of various industries. The company reported an intermodal revenue of $264.7 million for Q3 2024, which is consistent with $263.0 million from the previous year. The revenue per order rose to $2,470.

Orders in the intermodal segment increased to 106,345 in Q3 2024, up from 105,351 in Q3 2023. This growth reflects Schneider's ability to adapt and provide customized solutions across different freight modalities.

Strong safety and compliance record

Schneider National emphasizes safety and compliance, which is evident in their operating ratios. The operating ratio for the enterprise was 96.7% for Q3 2024, indicating a disciplined approach to managing operational expenses. The company also reported a decrease in insurance and related expenses, which were $36.4 million compared to $26.6 million in Q3 2023.

Additionally, Schneider's fleet management strategies, including investments in safety technologies, contribute to maintaining a strong safety record while optimizing operational efficiency.

Schneider National, Inc. (SNDR) - Business Model: Customer Relationships

Dedicated account management

Schneider National emphasizes dedicated account management to foster strong relationships with key clients. This approach is evident in their dedicated trucking services, where they manage specific customer needs with tailored solutions. In the nine months ended September 30, 2024, Dedicated revenues (excluding fuel surcharge) reached $1,035.3 million, an increase from $930.7 million in the same period in 2023. The average number of dedicated trucks increased to 6,672 from 6,115 year-over-year, indicating a focus on expanding resources to meet customer demands.

Regular communication and support

Regular communication is pivotal for Schneider National's customer relationship strategy. The company engages clients through consistent updates and support systems. As part of their operational excellence, Schneider reported a revenue per truck per week for Dedicated services of $4,020, up from $3,958 in 2023, reflecting improved service delivery and client engagement.

Customer feedback integration into services

Integrating customer feedback into services is a critical component of Schneider's operational strategy. The company actively seeks client input to enhance service offerings. This feedback loop is vital for adapting to market conditions and customer preferences. For instance, the Truckload segment reported an income from operations of $23.7 million in Q3 2024, down from $24.5 million in Q3 2023, indicating the need for responsive adjustments based on customer feedback.

Loyalty programs and incentives

Schneider National implements loyalty programs to incentivize client retention. These initiatives aim to reward long-term partnerships and encourage repeat business. The company has seen a decrease in logistics revenues (excluding fuel surcharge) by $94.2 million in the first nine months of 2024 compared to the previous year, highlighting the importance of enhancing loyalty programs to retain customers amid competitive pressures.

Metric	Q3 2024	Q3 2023	Change
Dedicated Revenues (in millions)	$1,035.3	$930.7	+11.3%
Average Trucks	6,672	6,115	+9.1%
Revenue per Truck per Week	$4,020	$3,958	+1.6%
Truckload Income from Operations (in millions)	$23.7	$24.5	-3.3%
Logistics Revenues Decrease (in millions)	$94.2	N/A	N/A

Schneider National, Inc. (SNDR) - Business Model: Channels

Direct sales through sales representatives

Schneider National employs a dedicated sales force that drives direct sales efforts. As of September 30, 2024, the company reported operating revenues of $1,315.7 million, with a focus on enhancing relationships with key clients. The Truckload segment, which is a significant contributor, recorded revenues (excluding fuel surcharge) of $532.2 million for the third quarter of 2024, reflecting strategic sales initiatives.

Online platforms for service requests and tracking

Schneider National has developed robust online platforms that facilitate service requests and cargo tracking. These platforms are integral to customer engagement, allowing clients to monitor shipments in real-time. The company reported a significant increase in online interactions, with over 70% of service requests being handled digitally. This digital transformation is aimed at enhancing customer experience and operational efficiency.

Partnerships with freight brokers

The company has established strategic partnerships with various freight brokers, expanding its market reach. In the third quarter of 2024, the Logistics segment generated revenues of $313.7 million, which included contributions from these partnerships. Schneider National's brokerage operations have seen fluctuations in volume, affected by market conditions, which led to a decrease in revenue per order.

Industry trade shows and conferences

Participation in industry trade shows and conferences has been a vital channel for Schneider National. These events provide opportunities for networking and promoting services to potential clients. In 2024, the company attended several key trade shows, enhancing brand visibility and fostering new business relationships, which are crucial for maintaining competitive advantage in a dynamic market.

Channel	Method of Communication	Revenue Impact (Q3 2024)
Direct Sales	Sales Representatives	$532.2 million (Truckload Segment)
Online Platforms	Service Requests & Tracking	70% of interactions handled digitally
Partnerships	Freight Brokers	$313.7 million (Logistics Segment)
Trade Shows	Networking Events	Significant brand visibility and new relationships

Schneider National, Inc. (SNDR) - Business Model: Customer Segments

Large enterprises requiring dedicated logistics

Schneider National serves large enterprises that require dedicated logistics solutions. For the nine months ended September 30, 2024, the Truckload segment generated revenues (excluding fuel surcharge) of $1,610.6 million, with dedicated revenues accounting for a significant portion of this, reflecting an increase to $1,035.3 million from $930.7 million year-over-year.

The average number of dedicated trucks increased to 6,672 in 2024 compared to 6,115 in 2023, and the revenue per truck per week was $4,020, up from $3,958 in the previous year.

Small to medium-sized businesses needing flexible transportation

Small to medium-sized businesses (SMBs) are a vital customer segment for Schneider National, particularly in logistics and flexible transportation services. The Logistics segment generated $155.1 million in revenue for the nine months ended September 30, 2024, an increase from $135.9 million in the same period in 2023. The operating ratio for this segment was 97.5%, indicating efficient management of operational costs.

Schneider's flexibility in service offerings allows SMBs to adapt to market changes, providing tailored solutions to meet their unique needs.

E-commerce companies seeking reliable shipping

As e-commerce continues to grow, Schneider National has focused on serving this sector by providing reliable shipping solutions. The Intermodal segment, which caters to e-commerce companies, reported revenues (excluding fuel surcharge) of $575.2 million for the nine months ended September 30, 2024, compared to $674.4 million in the same period in 2023. The revenue per order was $2,452, down from $2,573 year-over-year.

The company has adapted its services to meet the demands of e-commerce, ensuring timely deliveries and efficient logistics management.

Industries such as retail, manufacturing, and automotive

Schneider National serves various industries, including retail, manufacturing, and automotive. The Truckload segment's revenues were $1,610.6 million for the nine months ended September 30, 2024, with a notable contribution from dedicated services driven by organic growth and acquisitions. The operating ratio for this segment was 95.7%.

Additionally, the Logistics segment's revenues reflect significant activity in these industries, with a decrease in revenues attributed to market conditions impacting brokerage volumes, which are critical for sectors like retail and manufacturing.

Customer Segment	Revenue (in millions)	Operating Ratio (%)	Average Trucks	Revenue per Truck per Week
Large Enterprises	1,610.6	95.7	10,652	$3,917
Small to Medium-Sized Businesses	155.1	97.5	N/A	N/A
E-commerce Companies	575.2	94.1	1,417	$2,470
Retail, Manufacturing, Automotive	1,610.6	95.7	10,652	$3,917

Schneider National, Inc. (SNDR) - Business Model: Cost Structure

Fleet maintenance and fuel costs

In 2024, Schneider National incurred significant costs related to fleet maintenance and fuel. Specifically, fuel and fuel taxes for company trucks decreased by $22.8 million, or 7%, due to a lower cost per gallon, although this was partially offset by an increase in company driver miles within Truckload. The overall fuel costs are largely recovered through fuel surcharge programs.

Labor costs for drivers and support staff

The labor costs, which include salaries, wages, and benefits, increased by $51.5 million, or 5%, primarily due to the acquisition of M&M. The impact of this acquisition was significant, affecting the overall wage structure. Despite this increase, salaries, wages, and benefits remained comparable to the previous year as incentives and healthcare were offset by lower wages in some areas.

Technology and system maintenance expenses

Technology and system maintenance expenses are crucial for Schneider National's operations. In 2024, the company reported an increase in depreciation and amortization expenses by $25.4 million, or 9%, due to additional depreciation from trailer and tractor growth. This reflects the ongoing investment in technology to enhance operational efficiency.

Insurance and liability costs

Insurance expenses have seen a notable increase, rising by $9.8 million, or 37%, driven by higher auto liability insurance costs related to increased premiums and claims development. This rise in insurance costs is a critical factor in the company's overall cost structure, impacting profitability.

Cost Category	2024 (in millions)	Change from 2023
Fuel and Fuel Taxes	$22.8 (decrease)	Decreased by $22.8 million, or 7%
Labor Costs (Salaries, Wages, Benefits)	$51.5 (increase)	Increased by $51.5 million, or 5%
Depreciation and Amortization	$25.4 (increase)	Increased by $25.4 million, or 9%
Insurance Expenses	$9.8 (increase)	Increased by $9.8 million, or 37%

Overall, Schneider National's cost structure in 2024 reflects a combination of increased labor and insurance costs, alongside strategic investments in technology and system maintenance, while experiencing a slight decrease in fuel costs due to market conditions. This balance aims to maximize operational efficiency while managing overall expenses effectively.

Schneider National, Inc. (SNDR) - Business Model: Revenue Streams

Freight transportation fees

In 2024, Schneider National reported Truckload revenues (excluding fuel surcharge) of $1,610.6 million, a slight increase from $1,605.0 million in 2023. The Dedicated segment contributed $1,035.3 million to these revenues, reflecting growth driven by new business and the acquisition of M&M. The average revenue per truck per week in the Dedicated segment was $4,020 in 2024, compared to $3,958 in 2023.

Logistics service fees

Logistics revenues (excluding fuel surcharge) for Schneider National decreased to $957.4 million in the nine months ended September 30, 2024, down from $1,051.6 million in the same period in 2023. This decline of $94.2 million was attributed to reduced revenue per order and lower brokerage volumes due to challenging freight market conditions.

Fuel surcharges

Fuel surcharge revenues for Schneider National amounted to $442.8 million in the nine months ended September 30, 2024, down from $507.4 million in the same period in 2023. This $64.6 million decrease was primarily due to lower fuel prices impacting the surcharge calculations.

Equipment leasing and sales revenue

In the nine months ended September 30, 2024, Schneider National's Other segment revenues, which include leasing, reached $295.1 million, compared to $249.5 million in the same period in 2023. The increase of $45.6 million reflects higher volumes within the leasing business, demonstrating growth in this revenue stream.

Revenue Stream	2024 Revenue (in millions)	2023 Revenue (in millions)	Change (in millions)
Truckload (excluding fuel surcharge)	$1,610.6	$1,605.0	$5.6
Logistics (excluding fuel surcharge)	$957.4	$1,051.6	($94.2)
Fuel Surcharge	$442.8	$507.4	($64.6)
Other (Leasing)	$295.1	$249.5	$45.6

Updated on 16 Nov 2024

Resources:

1. Schneider National, Inc. (SNDR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Schneider National, Inc. (SNDR)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Schneider National, Inc. (SNDR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.