Case Study — Automotive Company — Small Package Shipping
Case Study: How an Automotive Company Saved Over $22,000 Per Year on their Small Package Shipping Expenses
BENEFITS SUMMARY:
Significantly reduced fees for small package shipping services.
SERVICE:
Risk-free review of small package shipping cost structure and search for cost saving solutions.
SITUATION:
A large Chevrolet dealer in Michigan employed Don Johnston of Schooley Mitchell of Detroit to conduct a cost-saving analysis of their small package shipping cost structure to optimize their bills. Schooley Mitchell reviewed their services and conducted analysis to locate any possible cost-saving solutions while maintaining a similar level of service.
ANALYSIS/RECOMMENDATIONS:
We reviewed their current small package shipping cost structure, and, since we are independent of all vendors, our cost saving recommendations considered all options in the marketplace which included the current providers. After considering the type of business, their shipping volume and their most used shipping services, we compiled a Value Report that detailed the existing environment and a pre-negotiated futur e state. The Value Report included profit-increasing recommendations, which included recommendations for the current and alternate providers. Because we have structured over 21,000 deals, use proprietary software for analysis and have the negotiation power of a large national organization, we were able to come up with multiple cost saving recommendations for their small package shipping & courier services.
RESULTS:
The automotive company used two different carriers to meet their needs. While Schooley Mitchell found that services with their secondary vendor were already optimized, we negotiated significant savings with their primary vendor –over 26%. On the client’s side, the savings require only a signature to approve the pricing addendum to the existing agreement. Once the client selected the cost saving recommendation, Schooley Mitchell handled the implementation. We were able to effectively organize their shipping services and save them over $22,000 per year. Schooley Mitchell will continue to manage their services in the future, and conduct continuous post-audits to find even more savings.
