Case Study – Shoe Trading Platform

Reducing Costs and Improving Operational Efficiency

Supply Chain Operations / Finance

Since 2023, we have worked with a leading shoe trading platform facing escalating parcel shipping costs, lack of visibility into carrier agreements, and frequent invoicing errors. These challenges were impacting the company’s profitability and operational efficiency. Our team reviewed the platform’s shipping data comprehensively, renegotiated carrier contracts, and implemented an invoice auditing process. These efforts resulted in reduced shipping expenses, enhanced carrier agreements, and the identification of billing discrepancies, ultimately driving significant savings and improving operational workflows.

“Revitalizing Presence: Escaping the Struggle of Unseen Products”

PAIN POINTS THEY WERE EXPERIENCING:

Escalating Shipping Costs: Rising parcel shipping expenses were negatively impacting the platform's bottom line.
Lack of Carrier Visibility: Inefficiencies in carrier contracts due to uncompetitive rates and poor visibility into carrier terms.
Invoicing Errors: Frequent mistakes in billing, such as misapplied surcharges and incorrect charges, leading to overpayments.

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The Solutions We Brought

Parcel Shipping Optimization

We analyzed the platform’s shipping data, including package dimensions, zones, and volume, to identify areas for improvement. This included consolidating shipments, using regional carriers for specific lanes, and switching to ground services for certain zones. We optimized shipping methods, leading to cost reductions and improved operational workflows.

Invoice Auditing

We implemented a thorough auditing process to analyze previous invoices for discrepancies, including misapplied fuel surcharges, incorrect dimensional weight charges, and late delivery refunds. The audit led to the recovery of $53,000 in savings from overcharges and billing errors over the past year.

Contract Negotiation

We benchmarked existing contracts against industry standards to pinpoint inefficiencies and negotiated with carriers to secure better rates, discounts, and terms. We achieved $156,000 in annual savings through improved rates and more favorable terms with carriers.

Operational Efficiency Improvements

By streamlining shipping workflows, consolidating shipments, and eliminating invoicing errors, we enhanced the platform’s logistics operations. The improvements resulted in better cash flow, reduced operational headaches, and a more streamlined process for the client’s logistics team.

"Working with the team has drastically improved our shipping costs and processes. The parcel shipping optimizations have made a noticeable difference, and the contract re-negotiations have resulted in substantial savings. We’re now confident that our shipping operations are both cost-effective and accurate."

⁠— COO, Shoe Trading Platform Client

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