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Client Case Study

A Negotiated Carrier Agreement Saved this Company $900,000

Retail
Contract Simulation
Logistics Engineering

CLIENT
Large Midwestern Distributor

INDUSTRY
Direct Mail, Promotional Materials & Office Supplies

COMPANY SIZE
1,000-5,000 employees

SIFTED SOLUTIONS USED

  • Contract Simulation
  • Logistics Engineering

Since 1981, this fast-growing midwestern company has become a leading distributor of direct mail, promotional products, office supplies, eCommerce, and marketing solutions. The company sends more than 700,000 packages each year, from dozens of vendors and warehouses around the country. Sifted’s Parcel Audit and Rate Simulation software has helped the company save hundreds of thousands in invalid accessorial fees over the past four years, plus, a newly negotiated carrier agreement has saved the company at least $900,000 more in annual savings from discounted rates and surcharges.

This Sifted client, a large promotional products company, serves thousands of customers each year, and has grown to include over 850 sales associates, 7,000 suppliers, and 200 home office staff. Through its sales network, eStores, and online catalogs, businesses of all shapes and sizes can select from an extensive inventory of promotional products, office supplies, and direct mail solutions. The logistics coordinator at the company tracks about 2,000 packages daily, primarily with UPS and FedEx. And he uses the Sifted Logistics Intelligence software to analyze the company’s parcel data and prevent thousands of dollars in invalid charges. For a recent carrier agreement negotiation, he used Sifted’s Contract Simulation engine.

“With more than $10 million in annual parcel spend, every fraction of a percentage point counts, and the stakes are high, Sifted gave us the perspective we needed to negotiate more knowledgeably, pinpoint our best opportunities for discounts, and ask for what we wanted. They helped us navigate the entire agreement negotiation process and think more critically about operations, packaging, and distribution center locations.”

Actions: Knowing Where You Stand – And Where You Want to Go

“Sifted went through our data with a fine-toothed comb, looking for patterns and anomalies in key areas like geography, package sizes, and service levels,” the client said. Transit times were modeled, package dimensions were evaluated, and rate scenarios were created that revealed inflection points – including what to do about them. “Sifted gave us the correct negotiating parameters and prepared us for what to expect in terms of concessions and pushback,” the client said. “We felt prepared and ready for the conversations with our carrier reps.”

Outcomes: Empowering Better Carrier Negotiations – and Rates

The client said Sifted has not only enabled parcel savings in the near term but has prepared the company for General Rate Increases in the long run. “The Sifted [Contract] Simulation and [Logistics Engineering] have saved us more than $900,000 in year one,” he said. “We’re in a much better position to keep costs low in the future. Sifted has future-proofed our parcel agreements and given us peace of mind that we’ve done everything we can to spend company resources wisely.” The client said the company’s finances have clearly benefited from the Sifted relationship, but sales reps, vendors, and most importantly – customers – have also won in the process. “Sifted is not only profitable to work with, they’re also a pleasure to work with,” the client said. “They’ve provided a real bottom line benefit in carrier audits and negotiations. Our customers are getting a better overall shipping experience.” “Relationships mean a lot in our business and they’re a solid partner that’s easy to work with.”

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