Case Study: How a Major Retailer Improved Delivery Time at Least Cost

Challenge 

For this retailer, company constraints left no flexibility in their carrier and service selection. The prevailing need for faster transit to enhance the customer experience at least cost drove change. A three year journey of optimizing and implementing a network with greater carrier flexibility resulted in savings of nearly $40 million and a dramatic improvement in transit time.


Solution

Green Mountain Technology’s (GMT) Parcel Spend Management solution provided a roadmap to achieve their goals. Reporting was provided to monitor if things were being executed correctly and modeling capabilties were developed to support decision-making and provide the cost impact of every business decision. 


Year one was all about creating visibility and strategy development. Together GMT and the retailer identified key metrics, implemented necessary reporting, and crafted a strategic plan for achieving their parcel network objectives.


Once the building blocks were in place, strategy execution was the focus throughout year two. They executed a carrier RFP and data-driven evaluation. This process was supported by GMT’s best in class RFP process, which allowed the retailer to understand the exact cost impact of every carrier proposal by rerating their historical data against the proposed rates. It resulted in the implementation of one regional carrier and a second national carrier. Immediately following the implementation, GMT supported the transition with multicarrier optimization.


Year three focused on refinement and enhancement. Vendor network analysis and improvements were ongoing. While 73 projects were completed in 2016, the most involved was a least cost carrier analysis. This analysis provided the data needed to optimize carrier evaluation and execute it within the constraints of their network.


Results

Over a three year period, the retailer saved $38,550,000 and GMT’s team helped support 128 strategic projects.