Case Study: Building
Materials Manufacturer
As a result of our expertise in parcel negotiations and direct refunds for controllable operational errors, our client realized shipping cost reductions of more than $375k annually.
Case Study: Building Materials Manufacturer
As a result of our expertise in parcel negotiations and direct refunds for controllable operational errors, our client realized shipping cost reductions of more than $375k annually.
Client Profile
Leading building materials supplier based in north-east Texas who has been in business for 70+ years.
Their product lines span both commercial, agricultural, and residential solutions with much of the latter being distributed through big box home improvement retailers.
$1.2m
Annual Parcel
Spending
90%
Tendered to Fedex
The Problem
High Shipping Costs
Due to the large size of their products, the client was heavily impacted by volumetric weight restrictions and other surcharges such as additional handling and oversize.
Waste & Inefficiency
In addition to identifying areas of rate and terms improvements in the FedEx contract, we found multiple controllable FedEx costs which could be reduced through active monitoring.
Our Solution
Contract Negotiation & Parcel Audit
Much of the focus for the pricing negotiation was on reducing specific costs and adding tems that held FedEx responsible for service failures. We improved discounts on heavier weight breaks, secured market appropriate discounts on dimensional surcharges, and identified services that were previously undiscounted.
- Adjusted contract to market price
- Reduced large parcels cost
- Added penalty for service failures
- Included missing discounts
Client Results
Bringing ShipRX and our unique expertise into the equation will even the playing field between shipping and carrier, so that you can recieve significant savings on your total shipping costs.
In addition to the usual credits obtained from late delivery refunds and reversals of inaccurate or invalid charges, we reviewed the company’s use of FedEx Ground for residential deliveries rather than FedEx’s Home Delivery service. By optimizing this process, we reduced misdeliveries and reduced their overall spend.
$169k
Contract Savings
$120k
Parcel Audit Savings
$86k
Effeciencies & Other Savings
Total Cost Reduction
Saving
FedEx Fees
Savings from ShipRX Services (6 Months)
$375,000
$825,000
Saving
FedEx Fees
While each opportunity will have varying degrees of success depending on the conditions, ShipRx has a 100% success rate in securing savings on behalf of its clients.
As a result of ShipRx’s expertise, shipping cost reductions totaled to more than 30% of the total shipping fees. This case study is a representation and reflection of ShipRx’s technology, industry experience, and market expertise. These are not uncommon results for companies turning to ShipRx for assistance.
- 100% Success Rate for Clients
- 30+ Years of Experience
- Thousands of Successful Clients
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