Case Study
Agile/NYC’s office saved a Long Island based Electronic Manufacturer over $500,000 per year in transportation spend by providing AgileElite shipping controls and addressing these key spend management areas:
Excessive Canadian cross-border charges: Electronics Manufacturer shipments entered Canada as individual shipments, incurring excessive transportation and brokerage charges.
Solution: AgileShip and AgileExport consolidate multiple shipments into a single cross-border shipment which are then drop shipped within Canada using UPS’ Trade Direct program. This solution has decreased transportation charges and brokerage fees and now shipments arrive in Canada one – two days earlier because of expedited customs clearance.
Annual Savings: $125,000
Lack of order consolidation: Electronics Manufacturer pays a service fee to a 3PL for each order processed and had no way of consolidating multiple orders into a single shipment to the same consignee.
Solution: AgileRoute identifies consolidation opportunities during the planning process and AgileShip consolidates and tracks multiple orders within a single shipment, thereby reducing carrier transportation costs and handling fees paid to 3PL.
Annual Savings: $46,200
Costly carrier insurance: Electronics Manufacturer used expensive insurance provided by carriers.
Solution: AgileShip calculates private insurance costs, updates ERP system with carrier insurance charges during shipping confirmation, and uploads reports to 3rd party insurance companies, saving Electronics Manufacturer 70% on insurance premiums and turning shipping into a profit center.
Annual Savings: $45,600
High international brokerage fees: Electronics Manufacturer paid 3PLs/freight forwarders for each set of US Customs documents processed for international shipments.
Solution: AgileExport processes all international forms, electronically files with US Customs, and stores all documents in a digitized format to comply with regulatory mandates. Electronics Manufacturer processes 200 shipments per month and saves $10.00 in fees per shipment.
Annual savings: $24,000
Unrecoverable Address Correction Costs: Electronics Manufacturer was unable to validate address data on their AS/400. Aside from the $4.00 fee paid to carriers for each address correction, shipments were delayed, lost or returned. Customers called to complain about late deliveries which were re-shipped. Electronic Manufacturer had to absorb all the costs associated with address correction fees, reshipments, lost goods, and re-stocking. Electronics Manufacturer paid 3PLs/freight forwarders for each set of US Customs documents processed for international shipments.
Solution: AgileManage generates detailed electronic reports detailing a history of all address corrections contained within carrier invoices. During the shipment process AgileShip validates each address before the shipment label is created thus virtually eliminating address correction and reshipment costs, while reducing customer service problems and lowering labor costs.
Annual savings: $24,000 (carrier fees)
Annual savings: $54,000 (elimination of reshipments fees)
Unrecoverable Residential and Accessorial Charges: Electronics Manufacturer incurred charges for residential, extended delivery area, and over 50 other unexpected accessorial fees that they were unable to identify and pass on to their customers at time of shipment confirmation and invoicing.
Solution: AgileManage generates detailed electronic reports providing a history of all residential, extended delivery area, and other unexpected accessorial fees contained within carrier invoices. During the shipment process AgileShip verifies residential status for each address and identifies other potential accessorial fees which are passed along to Electronic Manufacturer’s ERP system when the shipment is processed.
Annual Savings: $66,000
Unrecoverable Dimensional Weight Charges: Electronics Manufacturer incurred charges for unexpected Dimensional Weight charges that they were unable to identify and pass on to their customers at time of shipment confirmation and invoicing.
Solution: AgileManage provided detailed electronic reports providing a history of all dimensional weight charges contained within carrier invoices. During the shipment process AgileShip verifies container sizes and accurately calculates dimensional rates which are passed along to Electronic Manufacturer’s ERP system when the shipment is processed.
Annual Savings: $60,000
Unrecoverable 3rd Party Billing Account Charges: Electronics Manufacturer incurred charges for customers who preferred to be invoiced using their own shipper account #’s. Often these account #’s changed or were improperly applied, making charges against the accounts difficult to recover.
Solution: AgileManage generates detailed electronic reports providing a history of all 3rd Party Billing Account transactions. During the shipment process AgileShip now verifies and authorizes account #s and accurately passes along charges to Electronic Manufacturer’s ERP as appropriate when the shipment is processed.
Annual Savings: $65,000
Total annual savings: $509,800
