Fortune 500 company saves $6 million

Shipping Intelligence
December 29, 2021

Client is a Fortune500 company based in St. Paul, MN and provides cleaning and sanitation solutions worldwide. Its global transportation includes all modes—parcel, LTL, ocean and air freight. In the U.S., most of Client’s distribution moves through parcel and less-than- truckload (LTL) carriers.


Overview 

Client is a Fortune500 company based in St. Paul, MN and provides cleaning and sanitation solutions worldwide. Its global transportation includes all modes—parcel, LTL, ocean and air freight. In the U.S., most of Client’s distribution moves through parcel and less-than- truckload (LTL) carriers. Business is driven by customer satisfaction where the most important factors for high customer satisfaction are carrier relationships combined with quality of carriers used. 

Challenge 

CONTRACT OPTIMIZATION 

A CASE STUDY 

FORTUNE 500 COMPANY SAVES $6 MILLION 

  1. Optimize parcel and LTL carrier agreements to find additional savings on annual transportation spend of $20 million. 
  2. Help client maintain a strong relationship with each carrier to ensure high levels of service quality throughout negotiations and moving forward. 

Solutions 

Using its proprietary optimization software, iDrive Logistics performed a detailed analysis of Client’s historical parcel and LTL distribution data, using all carrier documents including Client’s carrier agreements.  iDrive’s deep knowledge of carrier cost models instead of benchmarking, enabled iDrive to drill down on every element within each agreement, creating digestible intelligence.  From this intelligence, iDrive provided Client detailed, strategic recommendations for improving and optimizing each agreement. To help Client maintain strong relationships with its carriers, iDrive consulted with Client’s team to outline strategies, including specific coaching on all areas that impacted overall bottom-line cost. 

The focus was not limited to discount percentages. iDrive provided direction as to surcharges, agreement structure, agreement language and more. Client’s team then worked directly with the carriers to implement iDrive’s recommended strategy. After each round of negotiations, iDrive evaluated the impact of any proposed agreement and made necessary strategy adjustments and recommendations to Client’s team. 

Results 

Despite Client’s strong, existing carrier agreements, iDrive helped Client negotiate a 3-year savings of over $6 million while maintaining—and even improving—carrier relationships, which was an area critical to Client. 

Thank you for viewing this case study. For more information about how iDrive Logistics can optimize carrier agreements, please visit our website or contact us at 888.797.0929. 

(888) 797-0929 www.idrivelogistics.com sales@idrivelogistics.com

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