When identifying savings opportunities, parcel shippers need to consider things like carrier mistakes, surcharges, operational improvements, and even their carrier agreement itself. It can be confusing, overwhelming, and intimidating—especially to those who have responsibilities outside managing their parcel budget. Additionally, shippers need to accomplish all of this while maintaining strong relations with their carrier.
Any good attempt at parcel savings must start with a foundation of data, analyzing Key Performance Indicators (KPIs) that provide insight into overall parcel health. From there, it’s critical to identify root causes of a bloated budget. Lastly, parcel shippers must use those findings to create a better, more effective model for their spend.
With the help of Sifted, eSigns.com was able to take control of their shipping costs while working with their carrier to develop a mutually beneficial agreement. But how beneficial was their outcome? The answer might surprise you…
Parcel Savings
There’s no way around it: savings starts with data, and eSigns.com’s process was no different. It began with a parcel audit to assess opportunities for carrier refunds. By connecting to Sifted’s software, eSigns.com was able to request and obtain refunds for up to $128,000.
“We were very satisfied with [the audit]. The initial setup was very, very simple. It resulted in free money that we were not getting otherwise, so it’s definitely worthwhile. Ultimately, that experience and satisfaction with Sifted were what kept us around for the additional offerings.”
-William Solomon, Senior Director of Products & Special Products at eSigns.com
Intelligence
Parcel auditing was a strong start for eSigns.com in recovering the money they were losing due to carrier mistakes, but the auditing did not represent the full savings opportunity.
“We were at a point where we needed to renegotiate our agreement. Sifted’s obvious expertise in the audit made us comfortable moving forward [with the Opportunity Analysis phase].”
-William Solomon, Senior Director of Products & Special Products at eSigns.com
It was only through Logistics Intelligence that they could identify the root causes impacting their parcel spend, address them, and prevent them from occurring again—delivering maximum savings in the process. With access to Sifted Logistics Intelligence, it was easier to determine the next steps for savings.
LI Pro – Logistics Engineering
Sifted determined the key savings areas eSigns.com should target when discussing a new carrier agreement.
“Before Sifted, we had no idea that we were being charged for preparing [carrier] labels that we didn’t use.”
-William Solomon, Senior Director of Products & Special Products at eSigns.com
Additionally, a projected savings figure was identified early in the process–one which Sifted and eSigns.com were ultimately able to exceed, delivering 122% of
expected savings.
With specific data, targets, and guidance provided by Sifted, eSigns.com was able to enter the carrier agreement discussions empowered with relevant data to support their positions. Best of all, after the new carrier agreement was executed, eSigns.com’s relationship with their carrier remains better than ever, with both parties developing a better understanding of the other’s needs. With both parties negotiating from an equal position of knowledge, they have developed a strong foundation for growth built on mutual trust and accountability.
Results Delivered as Promised–More than $375,000 in Savings
eSigns.com made a critical and strategic decision to seek out Sifted’s assistance in integrating a data driven approach to parcel accountability. And in doing so, they were ultimately able to drive much more savings than they could have from a parcel audit alone—savings to the tune of more than $375,000. Those savings can be reinvested into their company or passed down to their customers for greater satisfaction.
