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Distribution: £23,000 reduction in transport costs

A Heating and Ventilating company, moving palletised products to all parts of the UK as well as overseas, wanted to reduce their overall £210,000 annual budget.

Profit Booster Methodology reduces costs through tender

We analysed consignment movements. The company spent £150,0000 on UK freight and £60,000 on overseas distribution. Following our recommendation that the contracts be put out to tender, the existing carrier reduced his UK tariff by 4% or £6,000. The client was pleased to continue with the existing local supplier as the service was excellent. A new company was elected for overseas freight forwarding who offered a range of reductions: 8% for air freight, 35% for sea and 16% for road freight. This represented an overall saving of 28% or £17,000 on export costs.

Result

The Profit Partnership secured an overall reduction in transportation costs of £23,000, an 11% annual reduction.