Similarly, a US-based retail company expanded its online delivery services and partnered with a logistics company to meet the rising demand for online deliveries. With the gradual relaxation of COVID-related restrictions, the demand for their online services began to wane. Faced with this dilemma, the company grappled with the decision of whether to continue utilizing the logistics service. Discontinuation risked losing a portion of their online customer base, while continuing would entail ongoing high operational costs.
To address this quandary, the retail company turned to SpendEdge experts for assistance. Our team conducted a comprehensive cost benchmarking analysis of the supplier's warehouse operations. The analysis revealed that the average per-delivery costs charged by the logistics provider exceeded prevailing market rates. We not only identified this disparity but also furnished recommendations on how to renegotiate contract terms with existing customers. Additionally, we provided insights into optimal engagement models and curated a list of alternative suppliers the client could potentially collaborate with.
SpendEdge's expertise in procurement and cost analysis empowered the client to make informed decisions that not only preserved their online customer base but also optimized their logistics service procurement costs.
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About SpendEdge
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SOURCE SpendEdge
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