INDUSTRIAL CHEMICAL PRODUCER
AND DISTRIBUTER

SITUATION

  • Company had tightly managed their transportation spend, but wanted a third-party evaluation of potential savings opportunities
  • Rapidly changing fuel surcharges and other rising transportation costs warranted review
  • Union Partners began a study focused on benchmarking and evaluating savings opportunities for Truckload Dry Van, truckload tank, and LTL spending

RESULTS

  • Union Partners identified savings opportunities in excess of $500 K, or about 7% in truckload transportation spending
  • Aided the client in verifying savings generated by a fuel surcharge program that the company had recently initiated
  • Identified opportunity in the area of data capture that would aid in identifying future savings

ACTION TAKEN

  • Company initially focused efforts on lowering rates where the savings were significant
  • Study confirmed that company efforts to aggressively manage LTL rates were effective
  • Company reconfigured their usage of their private fleet to the most expensive to outsource lanes, utilizing the suppliers identified in the study to replace the fleet’s previous usage
  • The company decided to not undergo an initiative to negotiate their own rates for a sizable portion of their shipments