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Case Study
$1.9 Million in Parcel Savings Driven to the Bottom Line
From Stagnant Contracts to a Stronger Agreement
A global automotive manufacturer that ships replacement parts annually for service and warranty repairs viewed small-parcel shipping as a fixed cost of doing business. Unfortunately, the company’s procurement team had limited information on its own data and stagnant carrier rates. Through their OMNIA Partners membership, the company engaged TransImpact to gain full visibility into its parcel spending and secure a new carrier contract with significantly more favorable rates, delivering $1.9 million in savings and exceeding the original target by 31%.
Industry: Automotive Manufacturing
Products Used: Parcel Spend Intelligence, Parcel Contract Negotiation
The Challenge
Stagnant Rates and No Visibility
For a global automotive manufacturer, every shipment of replacement parts supports a customer waiting on a service or warranty repair. With five North American distribution centers and approximately $8 million in annual parcel spending, reliable, cost-effective delivery is a strategic priority.
However, the company’s procurement team had not seriously challenged its parcel agreements for years. Although they were experienced negotiators, parcel shipping was an entirely different world, full of vague complexity. The company wanted a partner who understood parcel.
Through OMNIA Partners, the company engaged TransImpact’s Parcel Contract Negotiation expertise and Parcel Spend Intelligence audit and analytics to gain the market leverage needed to secure a stronger contract and provide significant savings.
The Solution
Data-Driven Negotiation & Stronger Carrier Contract
When the company began the no-cost, no-obligation analysis, a significant obstacle emerged immediately. The procurement team had no centralized access to its own parcel data. No single login or unified platform was housing their shipping information.
The company consolidated its data into TransImpact’s Parcel Spend Intelligence, then ran a comprehensive audit that revealed a substantial savings opportunity on approximately $8 million in annual spending. Beyond pricing, the analysis revealed additional audit savings on-time performance, air usage, and accessorial charges. These were areas of the company’s replacement parts shipping network that they had never been able to evaluate.
With data in hand, TransImpact coached and counseled the contract negotiations behind the scenes, protecting the manufacturer’s carrier relationships while driving market-appropriate rates. The result was a new carrier agreement with significantly more favorable pricing, supported by grace period extensions and discount protections to ensure a smooth transition without disrupting service.
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The Results
Improved rates, expert negotiations
The company achieved:
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• Consolidation of its shipping data for the first time
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• Granular reporting on pricing, performance, and accessorial charges
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• Expert-led negotiations that handled 90% of the effort
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• A new carrier contract with significantly improved rates and transition protections
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• Contractually guaranteed savings
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• Significant improvement in carrier account representation
By combining Parcel Spend Intelligence with expert Parcel Contract Negotiation, the automotive manufacturer transformed parcel from a fixed cost into a strategic advantage. The OMNIA partnership delivered $1.9 million in savings and established a foundation for ongoing optimization within the company’s replacement parts network.
Key Results
- $1.9 million in total parcel savings on $8 million in annual spending
- 31% over target ($1.45M goal exceeded)
- New carrier contract with significantly more favorable rates
- Full visibility into parcel costs and on-time performance
TransImpact delivers intelligent transportation and supply chain solutions that unlock measurable savings and total cost visibility for the two most expensive aspects of operations—logistics and inventory. Our platform and services empower companies to plan smarter, move faster, and make every dollar work harder through data-driven insights, AI-driven technology, and automation.
