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