A global provider of aviation services and pilot training, recently experienced a sharp increase in shipping costs. The company also had concerns they weren’t receiving competitive discounts on their shipping volumes. Furthermore, while corporate headquarters used one primary transportation carrier, satellite offices and training centers used a mix of different carriers, making it difficult to manage spending and discounting.
The Group Member analyzed spending with each carrier and confirmed that the client was not receiving competitive discounts. CMG’s Group Member worked with the client to create a new contract with their primary transportation carrier.
The new contract drastically reduced the minimum shipment fee for internationalshipments by 30 percent, doubled the discount rate for all air shipments andprovided for a 25 percent discount for all ground shipments. Additionally, work wascompleted with more than half of the company’s satellite offices to create similarcontracts with the same primary carrier. In just 90 days, CMG’s Group Membersaved the client more than 21 percent of their total transportation spend.
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