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An international distribution business was spending six figures annually on freight. Shipping costs were stable but unmanaged. No one had reviewed rates in years. There were no decision rules, no comparison tools, and no governance around carrier selection.
We analysed the freight spend, renegotiated carrier contracts, built procurement tools, and implemented consolidation rules. The result: 20% reduction in both DHL and FedEx costs. The savings funded every other project we delivered for this client.
4 continents with standardised freight rules and tooling
Industry: International Distribution
Shipping Footprint: Multi-continent (four continents)
Annual Freight Spend: Six figures
Carriers: DHL and FedEx
Shipping was operationally stable. Packages got where they needed to go. But because it was working, no one had looked at the costs in years. Freight spend had drifted away from competitive benchmarks without anyone noticing.
This project emerged during broader operational scoping work. In conversations with the procurement team, it became clear that freight costs had never been actively managed.
Procurement relied on habit rather than analysis. There were no documented rules for choosing between carriers, no framework for when to request spot rates versus contracted pricing, and no guidance on consolidation versus speed trade-offs.
The team had no way to effectively compare options. They could not quickly evaluate whether DHL or FedEx was cheaper for a given shipment, or calculate the cost difference between air and consolidated freight.
After reviewing historical spend, it was clear that rates were misaligned with actual shipping patterns. Common weight bands (20-60 kg) were priced poorly. High-traffic zones (zones 4 and 5) showed inefficient shipment patterns. The business was paying more than it should given its volume.
There was no process for when to renegotiate contracts or seek alternatives. Carrier relationships had gone stale. The business had leverage it was not using.
Before: The Situation
Area | Before |
Carrier selection method | Habit / guesswork |
Comparison tools | None |
Rate review frequency | Years since last review |
Consolidation framework | None |
We approached this as both a commercial negotiation and an operational improvement. Better rates were only half the answer. Sustainable savings required better decision-making.
We started by understanding how the procurement team actually selected freight providers.
We analysed a full year of freight data to build the negotiation case and identify internal changes.
This analysis formed the foundation for everything that followed: negotiation leverage and internal process changes.
DHL Negotiation
Outcome: 20% reduction in DHL freight costs.
FedEx Negotiation
Outcome: 20%+ reduction in FedEx freight costs.
Once rates were improved, we focused on making the savings stick. Better prices erode without better processes.
This gave procurement clarity, confidence, and repeatability.
Further savings came from changing how shipments were batched.
This materially reduced per-unit freight cost without impacting customer satisfaction.
Metric | Before | After |
DHL freight costs | Baseline | -20% |
FedEx freight costs | Baseline | -20%+ |
Carrier selection method | Habit | Decision framework |
Comparison tools | None | Cost calculators |
Consolidation rules | None | Documented process |
The freight savings delivered immediate bottom-line impact. Cash flow improved through both reduced spend and better payment terms negotiated during the carrier discussions.
The savings from this single project funded every other piece of work we delivered for this client. Freight optimisation paid for itself and then some.
Procurement gained clear direction and confidence. They moved from guesswork to a repeatable system. Cost control became sustainable rather than a one-off win.
Start with data. Analyse a full year of shipping to understand your dominant lanes, weight bands, and zones. Build a negotiation position around your actual volume and forward commitments. Focus on the weight categories and routes where you ship most. In this case, we targeted 20-60 kg shipments and achieved 20% reductions with both carriers through volume-based negotiation.
At minimum, annually. Many businesses leave contracts untouched for years and pay above-market rates as a result. Your shipping volume changes, market rates shift, and carriers adjust their pricing strategies. Regular review ensures you stay competitive. Set a calendar reminder and treat it like any other procurement cycle.
Consolidation means combining multiple smaller shipments into fewer, larger ones. Instead of sending three packages separately, you hold them briefly and ship together. This reduces per-unit freight cost because carriers charge less per kilogram for larger shipments. The trade-off is slightly longer lead times, which most customers accept if service remains predictable.
Better rates are only half the answer. You need decision frameworks, comparison tools, and clear rules. Train your procurement team on when to use which carrier, when to consolidate, and when to request spot rates. Without process change, old habits return and costs drift back up. Governance is what turns a one-off win into permanent savings.
Yes, often more so than for large enterprises. SMEs frequently have unmanaged freight spend because shipping just works and no one has time to review it. Even modest percentage savings on six-figure annual spend deliver meaningful bottom-line impact. In this case, freight savings funded multiple other projects. The return on investment was immediate and substantial.
Any business with meaningful freight spend should assume there is hidden inefficiency unless proven otherwise. If no one has reviewed your rates in the past year, you are almost certainly paying more than you should.
The highest-impact engagements often start with analysis, unlock immediate savings, then compound through better decision-making.
Fixed scope. Clear deliverables. Clear timeline.
If we are not the right fit, we will tell you on the first call.
Welcome to WordPress. This is your first post. Edit or delete it, then start writing!