Case Study: Beauty
Product Manufacturer
Over a six-month period, we recovered substantial costs across our client’s UPS account, the majority being from savings attributed to contract renegotiation, and a portion from audit savings.
Case Study: Beauty Product Manufacturer
Over a six-month period, we recovered substantial costs across our client’s UPS account, the majority being from savings attributed to contract renegotiation, and a portion from audit savings.
Client Profile
Retail brand specializing in hair products and cosmetic brands serving consumers and salons across the globe.
In addition to a local retail, its primary sales channels are e-commerce, Amazon Marketplace – Fulfillment by Amazon (FBA) and Seller Fulfilled Prime (SFP). All of their volume is tendered to either UPS or the USPS.
Business Category
Beauty Product Manufacturer
Business Location
Tustin CA
The Problem
Free Shipping
Due to consumer expectations of free or minimal shipping charges, the client does not charge for shipping on orders over $99 and charges a sliding scale of $4.99 to $9.99 for shipping fees.
High Costs & Fees
Shipping costs are impaired company profitability and hurting their bottom-line. In search of options for decreasing their shipping costs, weanalyzed several months of shipping data and prepared a comprehensive solution.
Our Solution
Contract Negotiation & Parcel Audit
Our client saw an immediate cost reduction through our audit. In addition to the refunds secured through the audit, the client has been able to track and monitor areas of potential waste and inefficiency (e.g. address corrections, shipments manifested but not shipped) through the DataRx reporting platform. In this case, the contract negotiation process (initial carrier meetings through new agreement effective date) only took 13 weeks to complete and netted more than $50k in savings.
- Added ShipRX cost reporting
- Revised terms for service failure
- Added missing discounts in contract
- Identified shipping waste & inefficiency
Client Results
Parcel Audit & Contract Negotiation
Recovered shipping expenses by the ShipRx audit platform and contract negotiation over a six-month period.
$4,863.32
Recovered from Parcel Audit
$53,697.18
Saved from Contract Negotation
Savings
Monthly Charges
$8,249
$34,963.66
$12,474
$48,121.80
$9,911
$38,513.40
$9,177
$34,725.22
$10,032
$45,867.47
$8,719
$35,774.55
6 Months
Project Length
$58,560
Total Savings
-20%
Rate Decrease
Through the combined outcomes of our two core services, the client realized quantifiable savings of $58,560.50 over a 6-month evaluated. That’s a 20.1% cost decrease compared to what would have been paid without ShipRX.
This case study is not an uncommon result for our clients. A typical evaluation expectation runs ~12%-18% for parcel audit and parcel negotiation. In fact, outcomes exceeding 20% frequently occur via the negotiation service on its own.
- 100% Success Rate for Clients
- 30+ Years of Experience
- Thousands of Successful Clients
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