| A small consumer goods company came to us to benchmark their current parcel carrier. They have used this same carrier for several years but were not sure the rates they paid were competitive.
We used our parcel strategy tools to find three areas of opportunity amounting to a 9% reduction in the parcel spend with their current carrier. During our analysis, we also found that 31% of their packages invoked a commercial delivery charge in addition to their core rates. To eliminate this fee, we instituted another carrier to handle that volume. This saved an additional 10%.
Initially, our client had reservations using our process because of the comfort level they had with their current supplier. We showed them that in addition to the cost savings, their service will improve due to enhancements the competitor offers over the incumbent in certain geographic areas.
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