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Parcel Expense Management: Success Stories

Time and again, our parcel audit clients report considerable savings they’ve achieved as a direct result of their access to actionable data. With a powerful business intelligence engine at their fingertips, Cass clients can identify problem areas that represent opportunities for savings. And a dedicated account manager – with expert knowledge of the parcel shipping business – uses the same data to look for savings opportunities as well. The following anecdotes illustrate some of the results our clients have achieved – directly as a result of this visibility and advisement.

GRI Advisement - $900,000 Annual Savings

When its parcel carrier announced a General Rate Increase of 4%, this high-volume shipper budgeted for a 4% increase in its parcel costs. In reviewing the client’s shipping mix, however, Cass realized that its actual rate increase would be 7%. Cass and the client worked with the carrier to secure a net 4% increase overall – resulting in an annual savings of $900,000.

Identify Wasteful Spending - $570,000 Annual Savings

Although this manufacturing company was self-insured, the data that Cass collected from invoice files showed that employees were still spending $600,000 per year by insuring individual packages. We were able to pinpoint the bulk of the problem to a few locations. Through training and ongoing monitoring, 95% of the expense was eliminated.

Visibility into Account Activity - $110,000 Annual Savings

With another client, not long after our relationship began, we noticed that they had 100+ open but inactive accounts. Each inactive account was costing $18 per week in service charges - adding up to $2,000 a week, or $110,000 annually. With the client’s approval, Cass contacted the carrier to close the accounts.

Identify Account Misuse - $60,000 Refund 

As companies often do, this Cass client had provided an account number to a third party to use when shipping certain packages related to the client’s business. Using a standard Cass report that highlights potentially fraudulent activity, our client realized that the third party was shipping much more than was approved. Their account manager at Cass generated a report showing all past shipments where the account number was misused, the cost of which came to $60,000. We assisted our client in earning a refund from the carrier and rebilling the third party.

Match Manifest to Billed Data - $50,000 Savings 

Discrepancies can be identified when Cass’ automated system matches manifest data to billing information. For one client, the data that Cass collected from both sources highlighted a mistake by a warehouse manager who had received a ‘deal’ on some boxes. The result of this deal was that the new (and larger) boxes were causing two-pound shipments to be dimmed to 15 pounds, costing $5 more per shipment than they realized. This discovery prevented 10,000 additional and costly shipments.

Late Fee Visibility - $140,000 Refund

When systems go into production for new clients, a few problems usually jump out almost immediately. Often, one of these is a history of paying late fees. The first few invoices we received for a manufacturing client all had hefty late fees. Inquiring with the carrier, we discovered that our customer had unknowingly spent $140,000 on late fees in a 14-month period. Because these charges are typically hidden in the invoice, the client asked for and received a refund.

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