Data2Logistics Professional Services Case Studies
1. Domestic US Parcel Request for Proposal (RFP) - $ 2M Annual Savings (33%)
When one of our financial services company clients approached us for guidance on their expiring parcel agreement, we analyzed their situation and suggested launching a parcel RFP with both traditional national carriers and regional carriers. Our client had been told by their incumbent that an RFP would not result in lower rates as their current agreement was already at levels below market. We persuaded the client to utilize us to lead an RFP and the resulting savings from three rounds of negotiations was significantly higher than their expectations as annual savings of $2M were achieved.
2. Domestic US and International Parcel Request for Proposal (RFP) - $ 8M Annual Savings (10%)
After their parcel volume increased significantly, one of our electronics industry clients asked us to assess their domestic and international parcel spend and to offer suggestions for savings. Our assessment concluded that with their recent increase in parcel shipments, they were paying above market rates for their parcel shipments. In addition to rates, we identified several accessorial fees and contract terms and conditions which we thought could be improved upon. We were then asked to lead a four round RFP initiative for the client. The RFP resulted in significant annual savings of approximately $8M.
3. Global Ocean Request for Proposal (RFP) - $3.7M Annual Savings (25%)
Large technology manufacturing company with a global presence engaged Data2logistics for its’ expertise in negotiations and RFP design to review their ocean spend and perform an RFP. Data2logistics has developed a proven negotiation and RFP process that allows our clients to both optimize their savings and reduce the complexity of their existing rate structures. The Professional Services team led a three-round negotiation, including a face to face, which resulted in an annual savings of 25%. Our review found that origin and destination fees were not aligned and often redundant. The client needed support with creative inland solutions to reduce cost and improve transit times. The resulting contract and rate structure were simplified allowing for ease of management and a more efficient audit process.
4. Air to Ground Conversions - $ 975K Annual Savings (63%)
One of our global industrial clients approached us about helping to reduce costs without impacting their supply chain, as they were falling short of their logistics savings goals for the year. We analyzed several areas of opportunities, including short haul (under 600 miles) shipments moving by traditional air freight forwarders. We identified several lanes and locations where this was a regular occurrence. We then developed a plan for converting to LTL with no loss in transit time. This helped the client exceed their productivity targets and reduce costs.
5. North America Less Than Truckload (LTL) - $ 350K Annual Savings (21%)
This manufacturing company was looking to bid out their LTL freight but was unsure of the right approach. When our team of professionals reviewed their data and agreements, we developed a bid package that would best suit their needs. This included a customized rate structure, fuel surcharge, accessorial charges and tariff. Through multiple round bids, which included thorough analysis and guidance from our team, the client was able to exceed their expectations in savings and implement a simplified sourcing strategy with a few key providers.
6. North America Less Than Truckload (LTL) Request for Proposal (RFP) - $ 575K Annual Savings (19%)
One of our industrial manufacturing clients was considering going out to bid on several modes, and they asked our guidance on where they should focus. After analyzing numerous modes, we determined that LTL presented the best opportunity not only from a cost perspective but in improving their carrier portfolio and contract terms. We developed a bid package that would best suit their needs, including a customized contract, rate structure, fuel surcharge, accessorial charges, FAK, and tariff. With our team leading a multi-round bid strategy that incorporated key cost and transit targets, our client was able to significantly reduce their costs while improving their coverage and lead times.