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    CASE STUDY

    Redwood Achieves 16% Parcel Costs Savings for an Industrial Manufacturer

    MARKET: INDUSTRIAL MACHINERY AND EQUIPMENT

    Parcel shipping can be complex for manufacturers like this billion-dollar global manufacturer of industrial machinery and equipment. As it serves customers in multiple countries, the company provides large equipment—as well as a full range of attachments and spare parts.

    THE CHALLENGES

    • Urgent delivery expectations
    • Unfavorable parcel carrier contracts
    • Missed opportunities for carrier credits
    • Need for better rate negotiation
    • Lack of reporting and analytics

    THE SOLUTION

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    First, Redwood’s Parcel Advisory team provided auditing services to identify the underlying issues behind the company’s high parcel shipping spend. While the manufacturer had a great working relationship with their parcel carriers, they weren’t sure how much volume to give each carrier. The company was also missing out on carrier credits due to a lack of visibility. Next, the Redwood team provided mediation services to help the manufacturer rationalize its carrier mix and negotiate more favorable contracts.

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    Redwood helped the customer set cost-saving goals and align them with its day-to-day parcel shipping activities.

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    THE RESULTS

    16% savings on overall parcel spend
    Monthly audit and recovery savings
    Improved visibility, analytics, and reporting

    KEY TOOLS

    Parcel Advisory

    Redwood helped the manufacturer achieve an overall savings of 16% on its parcel spend, exceeding the savings target.