Success Story - "Small Package Freight"

Company Description

Small Emerging Fast Growing Pharmacy Benefits Company

Company Situation and Problem

• High number of small air freight shipments with volume of Express shipments increasing rapidly to improve customer service and inventory turns
• Single carrier with imbedded processes
• Significant existing volume discounts from carriers

Paladin Actions & Recommendations

• Gathered historical usage data and pricing
• Reviewed and analyzed contract and pricing
• Benchmarked pricing with other contracts
• Obtained usage forecasts and service level requirements
• Negotiated with current carrier to improve discounts and reduce assessorial charge

Client Results

• Immediate 5% price reduction
• Maintained current carrier – no switching costs
• New 5 year contract with additional discounts for volume growth