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Case Study
Major Manufacturer Cuts $3.1 Million in Small Parcel Spend
Turning Carrier Challenges into Strategic Wins
A major shoe and eyeglass manufacturer with $16 million in net parcel spend partnered with TransImpact to reduce shipping costs, resolve carrier issues, and gain better visibility into parcel performance. With TransImpact, the company saved $3.1 million—exceeding pre-engagement projections. TransImpact’s hands-on approach also helped the manufacturer navigate peak-season challenges, resolve rebate disputes, and maintain uninterrupted service during a major carrier capacity cut.
Industry: Apparel & Eyewear Manufacturing
Employees: 285
Headquarters: Los Angeles, CA
Products Used: Parcel Contract Negotiation
The Challenge
Carrier Constraints
A major footwear and eyewear manufacturer—known for its mission-driven values and iconic casual designs—manages a high volume of small parcel shipments to customers and retail partners.
With millions of units sold each year through both direct-to-consumer and wholesale channels, the manufacturer faced growing pressure to control shipping costs and gain transparency into carrier fees and contract terms. They engaged TransImpact to uncover savings opportunities and support more strategic parcel operations.
With TransImpact’s Parcel Contract Negotiation services, the manufacturer realized $3.1 million in savings—surpassing initial projections. The partnership also delivered stronger cost control, deeper insight into parcel trends, and a more efficient, margin-protecting shipping strategy.
The Solution
Trusted Guidance
TransImpact’s support became especially valuable during key inflection points. Early on, UPS presented a savings proposal to the manufacturer that came in significantly lower than expected—roughly half the projected value. Without robust internal tools to analyze parcel data or benchmark contract terms, the manufacturer relied on TransImpact for strategic guidance.
During the 2020 peak season, UPS implemented a volume cap limiting the number of shipments it would accept—posing serious service level challenges at a critical time. TransImpact helped the shoe and eyeglass manufacturer respond quickly, providing parcel insights, scenario planning, and support in navigating capacity constraints.
Additionally, TransImpact worked to resolve rebate discrepancies and improve oversight of earned discounts. Together, they enabled more consistent service delivery and stronger cost control, even under dynamic and high-pressure shipping conditions.
The Results
Stronger Contracts
With a complex shipping profile and rising carrier pressures, the shoe and eyeglass manufacturer needed more than just a better rate—they needed a partner who could deliver visibility, advocacy, and agility.
TransImpact’s Parcel Contract Negotiation team provided full-service support across the entire lifecycle of the agreement, including contract strategy, proactive carrier engagement, and monthly reporting to keep the client informed and in control.
The outcomes speak for themselves:
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Contract Negotiation Win: When UPS offered only $1.5 million in savings, TransImpact escalated the issue directly to the carrier’s leadership team. One week later, the full $3 million was secured—along with an apology.
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Peak-Season Backup Plan: When UPS capped volume, TransImpact helped the client reroute 40% of shipments to FedEx for uninterrupted delivery during a critical season.
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Rebate Advocacy: Although a 4% rebate was negotiated, UPS attempted to reduce it to 2% due to the lower volume it caused. TransImpact continued advocating on the client's behalf to recover the full rebate value.
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Actionable Reporting: Without internal parcel analytics, the company relied on TransImpact’s reporting to monitor performance, identify cost trends, and stay ahead of carrier changes.
Key Results
- $3.1 million annual parcel cost savings
- 19.4% realized savings (vs. 17.5% projected)
- UPS concession doubled from $1.5 million to $3 million
- 40% of volume seamlessly transitioned to FedEx during peak season
- Improved rebate recovery process
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.
