On this episode of Logistics Strategies Radio, Oliver Nodjoumi, Vice President Client Services at ICC, discusses a case study of how ICC Logistic Services helped a company save a staggering amount of money on shipping and logistics.
ICC Logistics services performed a work audit on parcel shipments of a fairly large global manufacturing company that spends about 8 million a year. Using an electronic audit for half a year on approximately $3.6 million dollars of spend, ICC was initially able to save the company $8,400 in recoveries.
After digging deeper into the contract, and running a separate report to find potential hidden savings, ICC found a staggering $500,000 in audit savings, and an additional $200,000 in savings from small mistakes such as address corrections.
ICC also discovered that having a guaranteed service refund waiver in the contract with the carrier is not always cost beneficial. This service waiver gives the shipper a certain discount of annual rates to forfeit their rights to submit claims for late deliveries, which happens to be the biggest service refund available. If this guarantee was not in this particular client’s contract, the parcel audit performed by ICC could have saved this client over $270,000 in the original six month period as opposed to $8,400.
Stay tuned for future episodes to find out more about how to find the money you never knew was missing!