Case Study - "Express Air
Freight"
|
Company Description
|
Fortune 5, Multi-Division,
Decentralized Conglomerate
|
Company Situation
and Problem |
High Number of Air Freight Shipments; Volume of Express Shipments Increasing
Rapidly to Improve Customer Service and Inventory Turns; Numerous carriers
with separate and different division level contracts; No Significant Volume
Discounts from Carriers; Freight Services Purchased by Local Logistics
Operations from carriers local sales reps; Invoicing and Payment
Decentralized and Not-Automated with high level of errors and duplicate
payments
|
| Paladin Actions & Recommendations |
Established Cross-Division, Cross-Functional Team with High Level Management
Sponsorship; Gathered Historical Usage Data and Pricing; Reviewed and
Analyzed Contracts and Pricing; Obtained Usage Forecasts and Service Level
Requirements; Consolidated Volume; Established Common Requirements; Act Like
One Big Company; Issued Consolidated RFQ to Carriers HQs; Established
Centralized payment processing and data collection routines
|
| Client Results |
= |
Immediate 25% Price Reductions |
|
= |
20% Volume Increase from Substitution From Other Modes |
|
= |
Final Actual Volume Resulted in Additional 12%
Discounts |
|
= |
Immediate 40-70% Savings for New Acquisitions |
|
= |
Automated
Invoicing and Payment Routines
|
| |
Huge Volume Consolidation
Project with Huge Savings |
|
