Manufacturer Cuts Transportation Spend by $516k Annually

The Challenge

The Manufacturer’s primary challenges were deeply rooted in financial and operational inefficiencies. Lacking their own dedicated, contracted freight rates, they relied solely on their TMS provider’s default rates, leading to unoptimized costs and no competitive leverage.

This financial strain was compounded by process inefficiencies: shipments were entered manually, and a complex, split-batch billing system for parcel and freight frequently caused late payments, incurring substantial fees and straining carrier relationships. Furthermore, a loss of control was evident in decentralized operations where suppliers could book shipments directly, creating an “unknown factor” of unwanted urgent shipments and accessorial charges.

Finally, in the wake of recent acquisitions, a missing integration process led to data silos and redundant manual data entry across disparate systems.

The Solution

Zero Down implemented a holistic, end-to-end supply chain management solution designed to create immediate value and build a foundation for long-term control.

1. Streamlined Systems and Integration: We implemented FreightOptics™ as the new core Transportation Management System (TMS) and integrated it directly with the client’s ERP, Epicor. This was achieved by setting up a daily transfer file to import all shipments into FreightOptics™ and an export file back to Epicor containing the PO#, carrier name, freight cost, and carrier pro #. This immediately eliminated manual entry.
2. Revamped Financial Control and Bill Pay: We overhauled the billing process, effective January 24, 2024, by adjusting to one consolidated invoice for both parcel and freight batches. This new system, coupled with automated GL coding based on shipper address criteria, ensured timely, accurate carrier payments, immediately eliminating late fees and improving cash flow.
3. Strategic Carrier Negotiations: We executed a comprehensive freight bid negotiation process that concluded between March and June 2025. The process secured 4 dedicated contracted rates, moving the Manufacturer away from relying on third-party tariffs.
4. Centralized Management & Control: We gained control over the supply chain by eliminating the ability for suppliers to book shipments directly. Instead, clear rules and procedures were implemented, and all urgent or accessorial charges were managed and escalated to the Manufacturer for explicit approval.

The Results

The strategic partnership yielded transformative results, delivering immediate and ongoing cost reduction and turning the supply chain into a controlled, competitive advantage.

Major Financial Impact

The financial impact was both major and immediate. New dedicated contracted rates drove a direct, sustainable saving of $25,000 in monthly LTL freight costs, a 16.5% reduction for that mode. In addition, we identified and eliminated unnecessary supplemental insurance charges, securing another $18,000 in monthly savings. Together, these initiatives delivered immediate and sustainable savings totaling $43,000 per month.

Operational Excellence

Operationally, the transformation was profound. The consolidated and streamlined billing process completely eradicated late payment penalties. All shipment and rate data became structurally located in the FreightOptics™ platform, providing total visibility and ensuring all freight invoices included a detailed line-item breakdown.

This new structure, combined with our managed freight service and the new TMS, gave the Manufacturer full control over their logistics decisions, allowing them to rate shop and select the lowest cost carrier before booking a shipment.

Ready to Replicate This Success?

If you’re relying on manual processes and lack clear visibility into your freight spend, you could be overpaying.