Case Study: $4.1M in Annual Logistics Savings — Parcel and Air Freight

The situation:

Two separate engagements, one theme: logistics categories quietly drifting far from market rates. A US manufacturing group was spending $12M annually on small-parcel shipping across multiple business units, each negotiating alone. Separately, an OEM's air freight lane from China was priced at roughly double the market rate per kilogram.

What we did

We consolidated the group's full volume and negotiated corporate rate cards that reflected their true combined buying power. For the air freight lane, we benchmarked the cost per kilogram against live market pricing and re-negotiated with full transparency on what the route should cost.

The results

Parcel spend dropped from $12M to $9M — a $3M (25%) annual reduction with no change in carriers' service levels. The air freight lane was cut by $1.1M per year (50%) on a $2.2M lane. Combined: $4.1M in annual savings, delivered without disrupting a single shipment.

What it means for you

Freight and parcel are among the fastest categories to benchmark — rate cards make overpayment mathematically provable. If logistics is a meaningful line in your P&L, a free benchmark will tell you exactly where you stand. Visit www.atlasprocurementsolution.us/contact to start.