Case Study: Retailer's Roadmap to $110M in Savings in 5.5 Years

Overview

This traditional department store is one of the largest retailers in the U.S. with more than 1,000 stores. In 2017, their parcel spend exceeded $451M. Their network infrastructure is complex, leveraging multiple carriers, ship-from-store strategies, a large drop-ship vendor network and multiple distribution centers.

Challenges

As carrier costs have steadily climbed over the years, this retailer focused on creating a parcel roadmap that capitalized on every possible efficiency to cut costs while still meeting their customer commitments on transit time. They identified 3 transit time options that would meet their customers’ needs. Analyzing their data was a key component of balancing their cost and service equation. The complexity of their parcel network requires a strategic approach and continual visibility and analysis in order to manage their data, locations, services, carriers, technology, etc.

Results

Green Mountain Technology’s partnership with this retailer resulted in $110M in savings/cost avoidance over 5.5 years with a return on investment of 1,544%.  Hundreds of strategic projects were tackled to support the execution, refinement and enhancement of their parcel network.