How a private retail chain attained $4.5M in cost savings through freight network optimization and contract improvements
A private-equity-owned dry goods retail chain faced escalating transportation challenges, including rising spot rates, tight carrier capacity, and declining service levels. With a nationwide distribution network and $75M in One-Way and Dedicated transportation spend, their outdated sourcing strategy—last updated nearly a decade ago—left them exposed to market volatility and cost risks.
Adding further complexity, the impending expiration of their Parcel delivery agreement created uncertainty around eCommerce fulfillment, just as demand surged. To stabilize costs and ensure reliable carrier partnerships, the company needed a proactive freight procurement strategy. ProcureAbility worked closely with the retailer’s logistics and sourcing teams to design and execute a multi-tiered procurement strategy, focusing on cost reduction, carrier performance optimization, and network resilience.
- Simplified carrier base, reducing to 40 One-Way carriers and 3 Dedicated Fleet carriers for better operational control.
- Implemented a Fuel Surcharge Program to lower fuel costs while securing competitive linehaul rates.
- Locked-in pricing and capacity with standardized contracts and carrier award packages.
ProcureAbility’s data-driven freight procurement approach
Network optimization modeling
Built a custom freight network model to identify cost reduction opportunities, optimize modal conversion between Truckload (TL) and Intermodal, and streamline distribution alignment
Carrier & contract optimization
Conducted a SWOT analysis of current contracts, assessed carrier performance, and negotiated improved terms with incumbents to stabilize pricing and capacity.
Strategic freight sourcing event
Managed a comprehensive sourcing initiative covering all One-Way Truckload, Intermodal, and Dedicated Fleet transportation, engaging 420 carriers (60 incumbents and 360 from ProcureAbility’s carrier network).
Measurable procurement impact & results
$4.5M in cost savings
Through freight network optimization and contract improvements.
$3.5M in sourcing savings
In the midst of historic market volatility and rising transportation costs.
8% reduction in total shipments
Improving efficiency and lowering costs.
Renegotiated Parcel agreement
Stabilized eCommerce delivery pricing before peak season, preventing significant cost increases.
Through ProcureAbility’s strategic freight sourcing and procurement expertise, the retailer successfully navigated market volatility, reduced transportation spend, optimized carrier partnerships, and ensured long-term supply chain efficiency. Explore the full case study to see how a data-driven transportation procurement strategy can drive significant cost savings and enhance carrier performance.
