iDrive’s team of experts has phenomenal depth and knowledge in small parcel consulting and optimization. They help our clients see through the murky waters of their carrier agreements to find hidden savings as well enhancing visibility of their respective supply chains. The case study below shows how iDrive helped one of their client’s reduce parcel costs by 17.4%.
Client is a major Office Supply and Furniture Distributor with shipments to customers throughout the United States. The client’s transportation encompasses parcel shipments, many of which are bulky and unwieldy due to the nature of the contents. Business is driven through customer satisfaction, where important factors include cost and reliability. They had experienced challenges in establishing procurement credibility with both carriers in the past, which combined with the shipment characteristics present made for a non-competitive transportation procurement environment.
1. Establish credibility with both carriers to create a competitive bid environment.
2. Reduce overall parcel shipping costs.
3. Lay the groundwork for future competitive transportation procurement.
iDrive Logistics performed a detailed analysis of the historical parcel distribution data, including carrier agreements. The Client was a long-time customer of UPS, and had struggled to bring FedEx to the table in the past. This had created a procurement environment devoid of competition among carriers, resulting in wide leverage for UPS and poor pricing performance for the them. iDrive provided quantitative analysis and contract procurement coaching, with the goals of providing a credible business case to draw FedEx to the table, credibly conveying to UPS that risk of business loss existed, and ultimately reducing parcel costs and enhancing service provided by the chosen carrier.
As a result of iDrive’s advisory services, the Client exceeded the original objectives. Both carriers produced quality proposals which led to a contract representing a 17.4% annual reduction in parcel spend, and laid the groundwork for future competitive bids. Credibility with both carriers was enhanced, costs were reduced substantially, and the Client is well-positioned for future transportation procurement and additions of addenda throughout the current contract term.
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