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CASE STUDY

Freight cost optimization CEP: Standard & Express

Despite rising costs in the CEP systems

Our client, a textile machinery manufacturer, had been working for many years with two CEP service providers (CEP = courier, express and parcel services) and accepted repeated price increases in an oligopolistic market. The aim was to achieve transparency regarding the shipment structure, to examine the need for service, to reduce costs via re-seller or parent account approaches and to simplify processes (single-carrier strategy or multi-carrier via a re-seller). Procedure: Expert interviews, as-is assessment, data and process analysis by CEP lead consultants, tendering, scenario development, negotiation and implementation. Solution: 1-supplier solution with an IT portal (tracking/tracing), an invoice and reporting; operational processing via DHL Express and UPS, among others, on behalf of a reseller. Result: Savings of 47.2% with reduced administration costs, approx. 100,000 € in absolute terms.

Savings
47,2 %
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