Delivering over 17% annual savings through procurement optimization

new fashion in modern shopping mall

About

Industry

  • Consumer, Retail & Fashion

SERVICES PROVIDED

  • Procurement
  • Tender Management
  • Market Rate Intelligence
  • Savings & Compliance Tracking
  • Xonar

The Challenge 

A North American discount retail chain had a USD 20 million annual parcel spend on managed global parcel shipments. While primarily focused on domestic U.S. flows, the customer also handled global inbound and outbound shipments. 

The customer aimed to lower shipping costs while renewing their contract with their current carrier. However, they lacked the internal resources to perform the analytics and bid management needed to explore alternative solutions and maximize potential savings. 

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The Solution 

BridgeNet Solutions (BNS) recommended running a comprehensive carrier bidding event, enabling multiple carriers to compete for the customer’s shipping volumes. This approach created competitive tension and uncovered savings opportunities beyond the status quo. 

BNS managed the project end-to-end, covering data collection, data cleansing, bidding event execution, shipment analysis, rate verification, billing validation, and savings reporting. 

Key actions included: 

  • Cleansing customer shipment data and building a custom bidding sheet aligned with their shipping profile. 

  • Developing a Carrier Bid Builder file with shipment volumes, high-level data, and bidding templates. 

  • Conducting a multi-round bidding event, with aggressive Round 2 targets to maximize savings. 

  • Performing detailed shipment analyses after each round, including Best Case, As-Is, Suggested, and Customizable Scenario results. 

  • Enabling the customer to create customized savings scenarios aligned with operational goals. 

  • Issuing carrier awards based on the final selected scenario. 

The Results 

At the conclusion of the bidding event, BNS presented a range of standard and custom savings scenarios, achieving potential annual savings exceeding 17%. 

Following implementation, BNS provided monthly reporting on post-bid shipping activity, detailing actual savings in both dollar value and percentage terms. 

Services Offered 

  • Procurement 

  • Tender Management 

  • Market Rate Intelligence 

  • Data Analysis