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Engineering Case Study

Solution

Efficiency study

10M+

Customer Annual Net Spend in Parcel

N/A

Cost Reduction Communicated Pre-Engagement

$388,000

Cost Reduction Realized Post-Engagement

Services Provided


Engineering

A major clothing retailer that has been a TransImpact client for many years asked us if we could help them identify any opportunity for efficiency savings by adding distribution centers. Our team reviewed all of the company’s shipping data and ran multiple shipping scenarios based on adding distribution centers in various locations. By ultimately shortening shipping zones with the addition of multiple DCs, we identified route optimization savings of $330,000 in Ground to Air, Economy vs Regular Ground, and 2nd Day vs 3 Day Air optimizations, along with another $16,000 in efficiencies. Unexpectedly, we also found that the client was using the wrong-sized poly bags for their product shipping and was getting charged additional handling. They made a quick change to a different-sized bag and picked up an additional $42,000 in cost savings. We are now working on Business Intelligence and Parcel Advisory for this client.

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