ShipRx logo with motto 'The Cure for the Common Carrier'
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Case Study:
Building Materials Manufacturer

As a result of our parcel negotiation expertise, identification and refunding of FedEx billing errors, plus service selection optimization, our client reduced their parcel costs by $375K in the first year alone.

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
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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.

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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
  • Removed service failure guaranteed waivers
  • Added discounts for overlooked services

Client Results

Bringing ShipRx and our unique expertise evened the playing field between shipper and carrier, resulting in significant savings on 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
Efficiencies & Other Savings
12 months
Project Length
$375,000
Total Savings
31%
Cost Reduction

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.

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  • 100% Success Rate for Clients
  • 30+ Years of Experience
  • Thousands of Successful Clients
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Schedule a Call
with Our Team

Contact us through phone or email, or submit a callback request through this form.

(844) 774-4779
[email protected]