Consumer Goods Distributor – Sharonville, OH

CLIENT PARCEL NEGOTIATION PROBLEM
  • Distributor of consumer goods with seven digit annual small parcel spend had no on-staff small parcel expertise
  • New DC leadership team tasked with negotiating small parcel agreement; current agreement expiration date quickly approaching
  • Existing staff could not determine from historical billing information where to focus negotiating efforts
  • DC leadership team feared leaving thousands of dollars on the table due to lack of internal subject matter expertise
DISCOVERY
  • LOTH Logistics subject matter experts met with client DC leadership to understand current state situation
  • Client provided LOTH Logistics with historical small parcel invoicing detail
  • LOTH Logistics met with client DC leadership to review historical findings; negotiating approach; and project timeline
OUR APPROACH
  • LOTH Logistics’ proprietary software developed in-house used to gain a detailed understanding of client’s small parcel spend
  • Proprietary software used to provide detailed feedback on initial proposals; how they compared to each other and client’s existing small parcel agreement
  • Upon reaching a new small parcel pricing agreement, client provided a detailed weekly savings report to track actual savings versus projected
THE RESULTS
  • Over a three year period, client realized a 10-12 percent savings using the new pricing agreement compared to prior rates
  • Minimal client time required from initiation to successful completion of project