Case Study — HVAC Manufacturer — Small Package Shipping
Case Study: How an HVAC Manufacturer saved approximately $35,000 on their shipping services
BENEFITS SUMMARY:
Significantly reduced fees for small package shipping services while remaining with the same vendor.
SERVICE:
Risk-free review of small package shipping and courier services cost structure and search for cost saving solutions and billing errors.
SITUATION:
A successful local HVAC manufacturer had a shipping contract with a large small package shipping and courier company, but they suspected they were paying too much for the services they were being provided.
ANALYSIS/RECOMMENDATIONS:
We reviewed their current small package shipping service structure, and, since we are independent of all vendors, our cost saving recommendations considered all options in the marketplace –including the current provider. After considering the type of business and the shipping services they use on a daily basis, we compiled a Value Report that detailed the existing environment and a pre-negotiated future state. The Value Report included several profit-increasing recommendations, which included 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 services.
RESULTS:
Our client selected the cost saving recommendation that maintained their current provider and Schooley Mitchell handled the implementation of the cost savings. We were able to locate and recover a billing error, then renegotiate their contract with their incumbent shipping provider for an estimated savings of $29,819.52 per year ($2,484.96/month), a savings of 17.66%. Implementation required only a signature on a rate addendum from the provider. There were no contract terms or changes to their shipping practices. After four months of auditing their new savings, the company has saved $11,824.69 – on pace for $35,474.07 per year.
