Customer Annual Net Spend in Parcel
10.49% Cost Reduction Communicated Pre-Engagement
Parcel Advisory and Audit
This customer is a major multinational company that ships exclusively with UPS, sending over 700,000 shipments annually, with 90% of those utilizing Domestic Air. This was our second negotiation working with this client, as their previous agreement was nearing expiration. As a result of the combination of the shipping volume decreases the client suffered due to Covid 19 along with the margin improvement initiative implemented by UPS senior management, the UPS contract renewal offer was well above market-appropriate rates. For a very strong reason, the client was hesitant to push back on UPS or invite FedEx to bid on their business, which greatly limited how much assistance we could provide them. What started out as a cost-reduction exercise quickly turned into a cost-increase-mitigation project. With our guidance the client reduced their original projected annual cost increase of over $800,000 by $100,000.