How a Manufacturer Cut Fees & Found $646k Savings

The Challenge: Compounding Inefficiencies and Spiraling Costs

Before partnering with Zero Down, the manufacturer’s primary struggle centered on a lack of unified control. The client was severely behind on carrier bill payments, incurring substantial and unnecessary late fees that strained carrier relationships and severely impacted cash flow.

This was compounded by unoptimized carrier agreements and a lack of data visibility, which led to excessive and unpredictable small parcel shipping costs. Furthermore, newly acquired entities lacked integration, creating data silos that prevented a clear, unified financial view of the entire logistics network, making strategic planning impossible.

The Solution: A Holistic Approach to Financial Recovery and Control

Zero Down implemented a holistic, end-to-end supply chain management solution focused on immediate financial recovery and process stabilization.

1. TMS Implementation & Automation: We first addressed the payment crisis by establishing a rigorous and repeatable small parcel bill pay system. This involved setting up GL coding based on address and account number criteria to allocate codes at the tracking number level. We then instituted a clear weekly process: every Wednesday, the client received a consolidated, GL-coded batch of all UPS and FedEx bills, requiring payment within two days to eliminate severe payment delinquency and late fees.
2. Freight Audit & Recovery: We deployed meticulous small parcel audit services for UPS and FedEx, identifying billing errors and service failures. Simultaneously, we implemented an NPOD (No Proof of Delivery) claims filing solution to recover losses from missing shipments.
3. Strategic Carrier Negotiation: We obtained and analyzed the client’s current UPS and FedEx agreements to create a baseline. Leveraging this data, we provided detailed verbiage and targets to renegotiate:FedEx: Requested adjustments to existing volume tiers to better suit the manufacturer’s current operational volume.
   UPS: Provided targets to secure better rates and new surcharge incentives, which were absent from their existing agreement.

The Results: Immediate Financial Savings and Operational Stability

The strategic partnership quickly stabilized the client’s operations and delivered significant, quantifiable savings in the current year. The new processes translated directly into major financial recoveries, including $623,043.36 in Small Parcel Rate Audit Savings, ~$23,000 YTD in Audit Recoveries (Late Refunds), and a 100% eradication of late fees.

Beyond the financial victories, the operational transformation was profound. The integration process was standardized, ensuring that logistics data for all operating companies is now centrally located, providing a single source of truth. The establishment of weekly, GL-coded payment batches dramatically improved supply chain efficiency, provided immediate visibility, and rebuilt positive relationships with core carriers.

Ready to Replicate This Success?

If your supply chain is suffering from fragmented data and uncontrolled parcel spend, you could be overpaying. Contact us for a custom supply chain assessment and discover how we can help you achieve similar results.