Situation
Transportation spend had grown faster than volume. Carrier agreements had rolled over with accessorial and surcharge creep, routing decisions were made shipment by shipment, and the TMS was underused. Finance saw the cost; operations lacked the data to challenge it.
Approach
Built an invoice-level data pack covering accessorials, surcharges, zone and weight distribution, and service level mix. Used it to renegotiate parcel and LTL agreements from a position the carriers could not dispute.
Redesigned routing rules and enabled them in the TMS. Established a monthly carrier performance and cost review.
Results
- Approximately 14 percent reduction in total transportation cost
- Multimillion-dollar annual savings
- Routing rules automated in the TMS
- Monthly carrier review cadence in place
What made it work
Negotiating with data instead of volume promises, and treating routing as a standing discipline rather than a one-time project.
Results reflect Warren's executive and advisory roles and the teams involved. See all case studies.