Challenge:

A nationwide home medical equipment provider, with over 200 locations in the United States, used the usual large companies to facilitate their shipping.   There were two major contracts, and a few smaller contracts for specific areas, to provide the shipping services that totaled over $7 million annually for this organization.

 

Opportunity:

Management was concerned with several different areas within their current contracts, and the cost optimization for freight shipping services was part of their 2020 initiative.

 

  • The two major carrier contracts were negotiated in-house with knowledgeable staff but there were still a couple of opportunities for cost savings missed
  • Over 360 account numbers and 1,432 invoices monthly that created extra work for the Accounts Payable team
  • Many of the shipments are not time-sensitive, so those were able to use the cheapest service and therefore technology was not a big factor in the negotiations of the current contracts
  • Rate shopping by the internal team did not net needed savings and was abandoned

 

Solution:

RadiusPoint and BNDL, the E-Procurement portal, utilizes Broussard Logistics to assist our Clients with identifying ways and methods to cut cost and optimize services in the shipping expense arena.    RadiusPoint brought in Broussard to cut costs, negotiate new agreements and to identify better shipping solutions.

 

What did we accomplish?

A complete review of current invoices were reviewed in an historical audit.  There were multiple areas of opportunity that were identified for process improvement.  In addition, the contracts were reviewed to identify overlooked areas of contract improvement that led to greater cost savings.  Broussard’s shipping tool also gave the capability to insert the shipping address to identify the lowest cost shipper that was set up in the Client’s portfolio of providers.

 

End Result:  Reduction of $580K monthly cost by 16%, saving them over $93,333.00 per month and $1,120,000.00 annually.