CASE STUDY

22% Savings in Shipping Costs is Both Rare and Well Done

MARKET: DURABLE CONSUMER GOODS

A leading outdoor products company—with a focus on backyard cooking—historically experienced fairly predictable demand patterns, leading to equally predictable logistics requirements and costs. However, as the global COVID-19 pandemic changed consumer behaviors and increased their time at home, demand for the company’s products skyrocketed. Suddenly the manufacturer not only needed to ship many more products, but also significantly increase its direct deliveries to consumers’ homes.

THE CHALLENGES

  • Need for cost control in parcel shipping at scale despite rising demand
  • Lack of analytics and reporting to optimize parcel shipping costs
  • Pressure to maintain high service levels and strong carrier relationships

THE SOLUTION

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Redwood’s parcel mediation service is built to address this challenge—and has produced results for over 500 customers. Redwood experts collaborated with the manufacturer to gather data and conduct an in-depth analysis of its parcel shipping practices.

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Redwood not only delivered strategic business insights, intelligence, and action items to drive down costs in the short term through an improved carrier contract, but also coached the company’s team members to create ongoing improvements and long-term savings after the initial engagement. 

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THE RESULTS

22% reduction in parcel shipping costs
More strategic approach to carrier relationships
Ongoing analysis to identify new cost savings

KEY TOOLS

Parcel mediation

Redwood’s Parcel mediation was not a one-time event, but instead represents a lasting collaboration with our business. In addition to delivering enormous and immediate cost savings, Redwood’s experts worked side-by-side with our team to create institutional knowledge and instill best practices. Today, Redwood is providing continuous support that allows us to identify and capture additional opportunities for cost savings. 

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