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Client Case Study

Datto Dusted Off the Negotiation Playbook to Save over $500,000

Technology
Logistics Engineering
Network Optimization

CLIENT
Datto

INDUSTRY
IT Services and IT Consulting

COMPANY SIZE
1,000 - 5,000 employees

SIFTED SOLUTIONS USED

  • Logistics Engineering
  • Network Optimization

Datto is the world’s leading provider of IT solutions delivered by Managed Service Provider’s (MSPs). Their services include business continuity, disaster recovery, networking, business management, file backup, and sync solutions. In less than two decades they’ve created a one-of-a-kind ecosystem of partners that provide solutions to half a million businesses across more than 130 countries.

Founded in 2007, Datto believes that there’s no limit to what businesses small and large can achieve with the right technology. Datto’s rapid growth, product excellence, superior technical support, and outstanding work culture has earned them hundreds of awards over the past 17 years. That success has set the stage for a fruitful future in serving the expansive and everevolving tech market.

Prior to partnering with Sifted, Datto’s Director of Logistics Matt Provost and Senior Manager of Hardware Operations Tom Pelillo experienced the painful process of manually generating reports from FedEx’s online reporting and UPS’s billing center. Now, in a moment’s notice they can get visibility into things like carrier delivery details, accessorial details, and more.

Matt and Tom can easily view and monitor their overall spend and the earned discount tier in which they reside on the logistics intelligence platform. The ability to access package analytics has a positive impact on Matt and Tom’s day-to-day functionality, and the company as a whole. Sifted’s data guides strategic conversations; it helps confirm or deny hypotheses and provides data driven expertise to continuously improve operational efficiency.

A New Perspective

With the demand for two-day delivery at an all time high, Datto wanted to ensure their customers’ expectations were met, and explored strict two-day delivery options. While analyzing their operations the team at Datto decided to evaluate their distribution center and knew Sifted’s wealth of data would be key to identifying viable options. Sifted provided a Network Optimization analysis that laid out the best options for savings and the fastest transit times.

Sifted compared Datto’s Average Cost Per Package to the Average Transit Time and provided four possible configuration scenarios.

Dusting Off the Negotiation Playbook

Datto’s partnership with Sifted started with the Parcel Audit. Now powered with Sifted’s Logistics Intelligence tools, they decided to go down an exploratory path to discover if their carrier was really saving them money. After some preliminary research, the logistics team at Datto realized they needed the right expertise and resources to simplify their negotiations – analyzing an agreement to understand true savings is an extensive process. That’s when they turned to Sifted for guidance.

Overview

Successfully negotiating better rates is complicated. Sifted showed Datto how to secure the best rates and terms for their business.

With nearly 600 negotiable components, analyzing a UPS agreement without the right partnership is a daunting feat. Data scientists and parcel experts analyzed their carrier agreement through the Sifted platform. The optimization process for Datto’s logistics team was simplified with a data-driven approach.

“Sifted was a huge asset; they were able to walk us through the agreement optimization process step by step. Their knowledge and experience helped set the stage for us and guided our internal conversations and timelines.”

-Tom Pelillo, Senior Manager of Hardware Operations at Datto

Logistics Engineering empowered the team to go to the table with comprehensive data to improve their carrier agreement. Matt and Tom’s experience with LI Pro – Logistics Engineering was positive and they would recommend it for shippers that want to successfully negotiate their carrier agreements.

With the new carrier agreement in place, Datto’s relationship with UPS is better than ever. They meet with the carrier bi-weekly to address issues across departments and hold them accountable to the service level commitment they made when they transitioned their volume to them.

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