Case Study – Title Company – Small Package Shipping
Case Study: How an eleven location title company saved approximately $106,000 a year on their shipping services
BENEFITS SUMMARY:
Significantly reduced fees for small package shipping services after switching vendors.
SERVICE:
Risk-free review of small package shipping and courier services cost structure and search for cost saving solutions and billing errors.
SITUATION:
An eleven location title company shipped documents overnight and also had their shipping directly integrated with their business software, making it daunting to examine. They suspected they were paying too much for the services they were being provided, but simply didn’t have the time required to optimize their solution.
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 highest cost-saving recommendation that we provided to them, which included a vendor switch. They were also presented an option to save $33,000 (11%) a year with their incumbent provider, but decided to switch vendors to maximize the savings. The savings came from a combination of reducing the aggressive pricing for overnight shipping, reduced surcharges, and eliminating their redundant pickup charges. Schooley Mitchell handled the implementation of the cost savings, including updating their business software integration to maintain efficiency and ensuring all locations had their individual needs met regarding packaging, pick up times and more. Our client will save $106,000 per year on their shipping costs – a reduction of nearly 35%.
