Case Study — Metal Manufacturer — Small Package Shipping
Case Study: How a metal manufacturer and distributor saved over $10,000 per year on their shipping expenses
BENEFITS SUMMARY:
Significant reduction on small package shipping costs
SERVICE:
Risk-free review of small package shipping and courier cost structure and search for cost saving solutions.
SITUATION:
A metal manufacturer and distributor employed Don Johnston of Schooley Mitchell of Detroit to analyze their small package shipping & courier account in order to locate savings. Schooley Mitchell reviewed their small package shipping cost structure and conducted a thorough analysis that took into account their current shipping environment and unique needs.
ANALYSIS/RECOMMENDATIONS:
Because Schooley Mitchell is completely independent of all vendors, we’re able to consider all the options available to our clients in the marketplace –including their incumbent vendor. After considering the type of business, their small package shipping structure and the available options, Schooley Mitchell compiled a detailed Value Report that showed the existing structure and a pre-negotiated future state.In this situation, the client’s main secondary option would result in an overall cost increase, as well as a significant change in their operations. Despite this, because we have structured over 21,000 deals, use proprietary software for analysis and have the negotiation power of a large national organization, Schooley Mitchell was able to negotiate with their incumbent shipping provider for significantly improved pricing.
RESULTS:
In addition to the discounts on transportation charges that Schooley Mitchell was able to negotiate, their incumbent also offered a 25% discount on all additional handling charges the client would incur. Our negotiations saved the dealer over $900 a month on their services and required no changes to their current processing environment in order to implement the rates. The client is now saving nearly $11,000 per year on their small package shipping fees. Schooley Mitchell will continue to conduct post-audits to find even more savings and ensure that our client is never spending more than they should on their small package shipping & courier fees.
