|Case Study: Renegotiating Parcel Rates|
Results for our Client:
- Reduced freight costs by over 90%
- Implemented multi-year contract to prevent annual rate increases
Our client, a manufacturer of fabric and wallpaper, was struggling dramatically to compete in certain markets. Why?
Because volatile, unpredictable, and ever-increasing parcel freight costs were actually exceeding profit on some orders.
In some instances, our client had to turn down a bonafide sale simply because spiraling freight costs eroded profit margins
and made the sale economically infeasible.
The ICC Solution:
ICC swiftly analyzed our client's parcel freight cost information and discovered that existing rates were not competitive. We therefore
renegotiated rates with our client's major parcel carrier. The results that we achieved didn't really surprise us, but they amazed
our client: a bottom line real cash savings of over 50% thanks to our renegotiated costs!
Furthermore, the carrier was brought under a multi-year contractual agreement. This continues to protect our client from
typical industry "annual rate increases".