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CASE STUDY
Redwood’s Parcel Makeover Drives $600k in Savings for Beauty Wholesaler
MARKET: WHOLESALE DISTRIBUTION
This U.S. beauty wholesaler sells brand-name products to over 150,000 licensed professionals via online and phone ordering. Its value proposition is unique: the lowest possible prices, combined with fast shipping in a single, consolidated delivery. That places pressure on its logistics team to deliver thousands of SKUs profitably from a central warehouse to all 50 states.
THE CHALLENGES
- Growing customer delivery expectations
- Lack of visibility into carrier rates and performance
- Rising parcel shipping costs
- Increasing logistics disruptions
THE SOLUTION
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This wholesaler’s success depends on delivering consolidating orders quickly, while also controlling shipping costs for healthy margins. Redwood’s Parcel Advisory experts conducted audits, applied analytics, and gathered business intelligence. They identified carrier invoicing errors, incorrect pricing, above-market rates, regional surcharges, and other cost drivers. Then Redwood helped rationalize the carrier mix and achieve better contracted rates via negotiation coaching.
THE RESULTS
Over $600k
annual cost savings on parcel shipping
18% savings
on ground commercial rates
28% savings
on accessorials
22% savings
on fuel costs
KEY TOOLS
Parcel advisory
Negotiation coaching
Parcel audit and business intelligence
Redwood was instrumental in assisting us with a deep dive review of our small package spend down to the last penny. From that experience we worked in tandem to strategically negotiate a very compelling rate agreement that allowed us to drive significant savings to our bottom line.