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Success Story - "Express Air Freight"

Company Description

Fortune 50, Multi-Division, Decentralized Conglomerate

Company Situation and Problem

  • High number air freight shipments with 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 and established common requirements
  • Issued consolidated RFQ to carriers’ Headquarters
  • Established centralized payment processing and data collection routines

Client Results

  • Immediate 25% price reduction
  • Final actual volume resulted in additional 12% discounts
  • Immediate 40%-70% savings for new acquisitions
  • Automated invoicing and payment routines

Significant Savings with Volume Discounts