Improve Margins Through Better Freight Management – A Case Study

Wholesale

We recently started working with bathroom supplies importer and wholesaler. Here is a brief summary of how FreightExchange helped to improve their freight management processes, and margins.

Background

Ben imports high end bathroom supplies from Europe. He has a showroom in Melbourne, and has launched an online platform to sell to retailers. Ben’s customers are mainly situated in Melbourne, but his company is growing and he’s now receiving orders Australia wide.

Ben prides himself on the exceptional customer service and beautiful products. Every item that leaves his warehouse carefully inspected. He insists on items being delivered carefully and chooses to use selected carriers that guarantee delivery quality and time. At the same time, freight costs affect his competitiveness, so he’s always looking for a balance between quality and price.

Ben’s business was growing and his freight needs are becoming more complex. He recently hired someone to help organise the growing number of quotes, pick-ups and deliveries but managing it all is still time consuming and costly.

What we did to improve freight management processes

As one of our first customers, we spent time understanding his needs, responding to feedback and getting our platform and processes right.

We spent several hours understanding Ben’s freight needs, existing systems and processes. Following this, we identified opportunities to save on his freight on certain routes and streamline his freight management processes.

We loaded all of Ben’s preferred carriers to Ben’s FreightExchange profile, so that he could instantly receive quotes and book freight with his contracted carriers, as well as the hundreds of freight transportation companies registered with FreightExchange.

We also integrated FreightExchange into his online ordering system via an API so to streamline his sales and delivery processes.

The result

Ben found that it was cheaper to send shipments to certain destinations with new carriers. He found that his existing carriers were perfect for deliveries in metro regions and to certain other destinations. More importantly, his team was able to spend more time on quality control and customer service, and far less time on the phone to carriers.

By using FreightExchange, Ben was able to minimise his costs and improve his service all over Australia.

The financial benefits

Turnover                                                $2,550,000

Domestic freight costs                         $185,000

Freight management costs                  $45,000

New freight costs                                  $166,000

New freight management costs          $5,000

Gross Margin Improvement                  2.3%