Analysis of the spend profile and benchmarking against market pricing and industry research revealed the client, a consumer electronics company, was overpaying for shipping services by as much as 60%
The company had no active account management in place, and no visibility into spend by functional area
The company had not established business rules and requirements to support global express and freight shipping
The client's shipping technology solution was not scalable and required manual completion of air bills.
Each shipment generated a separate invoice (approx. 2,500 annually), placing a significant invoice processing burden on accounts payable
How We Helped
Axiom Identified the savings opportunity, developed the sourcing strategy and secured stakeholder alignment
Executed the RFP and identified the provider best positioned to deliver a robust solution that would reduce both shipping and processing costs
Identified opportunities to realize additional value beyond cost savings
Led implementation and training efforts to ensure broad support and company-wide adoption
Value Delivered
Achieved Total Value Add in excess of 80% of baseline spend
Delivered annual cost savings of 42%
Changed web-based shipping default to Second Day (from Next Day) to better manage demand and generate additional hard dollar savings
Reduced inbound invoice volume 11% by implementing a consolidated invoice settlement solution, resulting labor savings of 1 FTE
Leveraged contract terms with new provider to achieve a revenue commitment from the supplier in an amount equivalent to savings.
