CASE STUDY – Transportation Spend Management

A precision scale manufacturer based out of the U.S. had $4.4M of international spend across 35 countries.  Their goal was to conduct an RFP to reduce their cost by ten percent or more and help normalize their import and export discounts.

The client’s internal billing process was set up to bill the importing country for the shipping cost.  Currency factors were not being considered.  The primary carrier had 85% of the business and express service was the primary mode of transportation.  Some countries were using domestic service providers to reduce costs for deliveries within each origin country.  The client began to roll out a new SAP implementation corporate wide.  This required that 100% of all locations importing product were required to pay the freight cost.  Small parcel import rates are normally more expense than export rates.  In this client’s case, there was a 25% difference between their import vs. export rates by country.

The consulting team, led by LCRP, identified which countries were considered primary, secondary and minor using historical carrier billing files.  We then identified the percent of shipments each country was being billed for, factored in import vs. export rates, and then “normalized” the cost for each country.

Taking the SAP implementation into account, we created a customized RFP for each of the four current carriers.  The RFP explained how the SAP implementation would require changes comparing the current billing process to our client’s new processes.  Each carrier was asked to blend their import vs. export rates to “normalize” the cost incurred by each country.  Our analysis identified a significant opportunity to reduce costs when factoring in currency rate differences by county.  This was something that the client never considered but would result in significant savings.

The RFP also requested that each carrier provide two proposals, one to maintain existing business and the other to meet all of our client’s needs.   In the end, the client reduced the number of carriers from four to three and realized a 30% cost reduction in overall transportation spend.

Once the new contracts were implemented, the savings by country and billing location was monitored for contract compliance and to identify and avoid unnecessary cost going forward.  The client was pleased to not only realize an immediate ongoing savings, but also have a new process in place to identify future opportunities to save.


     – 30% reduction on total transportation spend
     – Reduced carriers from 4 to 3
     – Implemented a process to realize additional savings

CASE STUDY – White Glove

A LCRP client was forced to issued a product in the U.S. and Canada.  They needed our firm to quickly create a process that had no limitations on the size, weight, shape or condition of the product being recovered and returned.  Their requirements included:

  • Dis-assembly and pack equipment for return
  • Two-person pickup teams were required due to the size of the returns
  • Product sorting and returns to multiple locations
  • Swap-outs for equipment handling
  • EPA-compliant service required for equipment dis-assembly, disposal, recycling and reuse

LCRP worked with the client to develop a tailored Recovery and Return service specifically designed to make this recall easy and convenient for the client’s customers.  Best of all, the service was available from every Zip code in the U.S. and Canada, 24 hours a day, seven days a week.

Services included:
  – Transportation
  – On-site Packing
  – De-installation
  – Swap-outs
  – Recycling
  – Call Center Management
  – Inventory Control

CASE STUDY – Parts Logistics

A medical device company was looking to partner with a third party logistics service provider to inventory critical equipment, spare parts, and replacement components to customers in the U.S. with expedited delivery 24/7/365.

LCRP identified a service provider with an established network of over 400 depot strategic stocking locations with the ability to custom design the exact parts service the client needed anywhere in the U.S.  The service provider integrated all client requirements, from transportation for replenishing their stock, local delivery (commercial or residential) time options, and a complete reverse logistics (product return) service that includes packing bar coding and a full option on freight services back to their designated destination into the solution.

The client had complete visibility at all times, through a customized website, for each delivery to their customer.  Rush Delivery Service as quick as 60 minutes was offered or the client could arrange to pick up the product and the service provider depot.

Transportation Services and Solutions included in the project:
  – Delivery within 60 minutes
  – Delivery within 90 minutes
  – 2 hour rush delivery
  – Customer pickup within 30 minutes of notification
  – Return equipment, including packing – 6 hours notification.
  – Available 24/7/365