In 2008, a $1 billion per year east coast based chicken processing firm was recommended to us by one of our existing customers. They were looking for ways to improve their transportation operations between their various plants located primarily in the southeast. After an extensive review of the activity between their warehouses, we were able to make several recommendations to reduce costs. Once our suggestions were implemented, they decreased their costs by 10% in the first year and an additional 4% in the second year.
A major on line retailer approached us to analyze their existing logistics process. After a lengthy review of one year of their freight spend, we went to our contract carriers with a RFP that resulted in a first year savings of 22% for our client.
One of our existing LTL clients asked us to help in the negotiation of their TL contracts. Before we approached the carriers, we analyzed their existing routes and offered suggestions for improvement. That consultative process coupled with the relationship that we have with many of the major carriers, resulted in a $300,000 TL savings in 2009, and the potential for another $230,000 in 2010.
A 15+ year client hired us to determine the appropriate location for a new distribution center. We reviewed the entire history of their freight and recommended a location central to their customers and vendors. We planned the routes, released the RFP to the carriers and monitored the first year of costs. In the second year, we were able to analyze the implementation of the new distribution center and make further recommendations for additional cost saving.
In the midst of this difficult economy, a well know home goods company client of ours implemented an immediate 5% reduction in operating costs. Based upon the experience that we had with their freight needs, we were able to recommend cost reductions that exceeded 14% of their freight spend.