Small Package

A major medical device manufacturer wanted to see if they were shipping products efficiently to hospitals and medical centers.

VTM conducted a comprehensive review of their shipping practices and costs. We compared rates and volumes to existing industry metrics and averages for shippers that fit a specific profile developed for our Customer.

Our findings identified that our Customer’s small package parcel costs were much higher than they had anticipated. We also highlighted opportunities for consolidation of shipments to larger customers where heavier package weights resulted in reduced shipping costs per order.

Guidelines were established with sales and purchasing departments that resulted in many orders being shipped with a service type of “standard overnight” instead of the more expensive “priority overnight”, based on actual Customer requirements. The result was a significant cost reduction without impacting overall customer satisfaction.

Finally, VTM was able to renegotiate the contract with their primary parcel carrier to leverage the rates for shipments at higher weight breaks.

The new agreement allowed customer to take advantage of their larger packages because of lower costs at higher weight break. Annualized parcel savings produced an overall 5% freight spend reduction (on a monthly spend in excess $1,000,000.00).

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