A U.S based division of a leading European transportation equipment manufacturer, primarily serving the automotive industry, operates a complex supply chain. With inbound shipments arriving from Europe and outbound packages ranging from documents to freight up to 14,000 lbs, the company relied entirely on a single major national carrier for all U.S. parcel shipping. Their domestic deliveries spanned multiple service levels, including ground, two-day, and overnight.

Having recently signed a new contract they believed was competitive, and with operations running smoothly, the company saw little need to revisit their setup. Logistics decisions were centralized in Europe, and the U.S. division maintained a strong relationship with its transportation provider’s sales team.

The Hidden Opportunity

Despite the client’s confidence in their existing agreement, our team recommended a parcel spend analysis, not to introduce disruption or suggest a transportation provider change, but to benchmark the agreement against current market standards for similar shipping volumes and profiles.

We emphasized a low-risk, high-reward approach: maintain current operations, but uncover potential savings hiding in the details.

Our Approach

We conducted a comprehensive, line-item audit of the company’s parcel shipping data, evaluating:

• Domestic and international express service tiers.
• Ground shipping across all weight breaks and zones.
• Over 150 individual surcharges and accessorial fees.
• Utilization patterns and shipment profiles.

Our analysis looked beyond base rates to assess the total cost structure, where true savings often lie hidden in the fine print.

Key Insights

While the base rates in their contract were largely in line with industry averages, the audit revealed:

• Discrepancies in surcharge application and minimums.
• Inefficient use of express services for short-distance deliveries.
• Missed incentives and bundling opportunities within their agreement.

Crucially, we demonstrated that these issues could be addressed without changing carriers or altering day-to-day processes.

The Outcome

With our insights and negotiation support, the client successfully restructured their existing agreement, yielding significant results:

• 15% reduction in total parcel spend through targeted contract revisions.
• An additional 3% savings by shifting short-haul express shipments (within 400 miles) to ground, preserving delivery speed while cutting costs.

Best of all, these improvements were made with zero operational impact:

• No transportation provider change.
• No platform migrations or software adjustments.
• No retraining of staff.
• No changes to pickup schedules, drivers, or labels.

The Takeaway

This engagement showcases the power of a transportation provider-neutral, data-driven approach. Even well-negotiated contracts can hide inefficiencies, and meaningful savings can often be unlocked without disruption.

By partnering with us, the manufacturer realized an 18% total savings while keeping their trusted carrier and existing logistics systems intact.

Learn More About Our Small Parcel Cost Optimization & Management Solution.