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Shipping cost reductions for automotive parts supplier

Home Success Stories Shipping cost reductions for automotive parts supplier

The Client:  An automotive parts supplier servicing businesses as well as consumers direct throughout the southwestern U.S. with an annual freight expense of just under $1,000,000. This shipper controls some inbound freight and all of the outbound freight. Their competitive advantage lies in their ability to provide superior turnaround on orders, delivering many parts the same day to customers within a 50 miles radius of their multiple locations with next day service on the rest. They utilize ground services, courier services, and LTL on heavier shipments and inter-facility transfers.

The Issue:  Service is paramount to the continued success of this shipper.  Our challenge was to optimize the freight efficiency while not impeding the time to market. The shipper wanted to retain their current carrier relationships and did not want to entertain a change of carriers.

The Solution: We negotiated directly with their existing carriers being mindful not to damage the existing relationship our client had with them.

Within 90 days we achieved following results:

  • Savings of 10% on small package freight, representing 15% of their total freight expense.
  • Savings of 5% on courier services, representing 64% of their total freight expense.
  • Savings of 22% on LTL shipments, representing 21% of their total freight expense.

Total blended incremental savings: Nearly 10% within 90 days.