A Fortune 100 retailer, like many others, suffered a shock to the supply chain over the past two years that reared its head in the form of higher transportation costs. The result directly impacted the bottom line and caused the company to enter the market for a solution to help in getting transportation costs under control.
The retailer had run requests for pricing (RFPs) in the past relying heavily on historical data but hadn’t been able to benchmark itself against its competitors. The retailer had concerns about moving to rates that were more in line with market rates because of the service levels it required.
Those concerns were quickly put at ease and potential savings were identified using FreightWaves’ Supply Chain Intelligence (SCI) platform.
In a short period of time, running the retailer’s network through FreightWaves’ SCI platform, it was able to identify lanes that present:
- Easy-to-find cost savings.
- The benchmarking ability at a lane level.
- The ability to maintain needed carrier compliance levels.
Just by targeting this low-hanging fruit, which equates to roughly 20% of the retailer’s network, the retailer found over $30 million in transportation savings just by reducing rates to the benchmark rate.
Even if freight along those lanes were to fall into the spot market, the retailer would have still garnered more than $10 million in savings when its benchmark rate is compared to the FreightWaves Trusted Rate Assessment Consortium (TRAC) all-in spot rates.