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Parcel Advisory Case Study

$16,000,000
Customer Annual Net Spend in Parcel
$2.8M
17.5% Cost Reduction Communicated Pre-Engagement
$3.1M
19.4% Cost Reduction Realized Post-Engagement

A major manufacturer of shoes and eyeglasses had a new management team and were open to hiring a consultant to assist with reducing their small parcel spend. The first UPS offer was only $1.5 million of our ask and they weren’t moving any further. The TransImpact account owner encouraged our contact at the client to reach out to the UPS VP of Sales on Linkedin and show his frustration. One week later, the VP called and said he had secured the full $3 million and apologized for the bad representation.

Everything was moving along smoothly until Oct 2020 when UPS told the client they were only going to take 60% of their volume and they would have to find another carrier. We had invited FedEx to bid originally but they always came up short. However, because we were already engaged with FedEx, they were willing to step in and help during peak season and pick up the extra 40% in SmartPost packages.

During the negotiation with UPS we secured a 4% rebate, but now UPS is trying to pay the client only 2% because of the reduced volume. In other words, UPS is penalizing the client for something that UPS did. We are currently proving to UPS that the client would have qualified for the 4% rebate had they been able to keep all of the volume with UPS.

Additionally to providing negotiation consulting, we frequently provide the client with reports because they have no way of gathering this information themselves. They rely heavily on TransImpact to be their eyes and ears of small parcel.

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