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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
 

 


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