Company: Mall-based Sporting Goods Retailer
Challenge: A mall-based sporting goods retailer projected a sharp increase in shipping costs as its success continued to grow. After reaching a stalemate in contract negotiations with their primary carrier, they brought in NPI to ensure the carrier’s pricing and terms would allow for maximum savings over the course of the contract.
Results: NPI’s transportation experts assessed their current transportation spend to verify the fair market value of the carrier’s pricing. They discovered a multitude of cost savings opportunities and pitfalls and recommended the company re-issue an RFP to competing carriers. NPI structured the RFP and pushed each carrier to become more competitive against the targets outlined in the RFP. After the carrier was selected and contract terms were defined, the savings were clear. The retailer would save a projected $1M for the first year, $1.4M for the second year and $1.7M for the third year.
