Driving $3.5M+ Annual Savings in Transportation for a Leading Industrial Company
Executive Summary
A large industrial company in New Jersey, facing rising freight costs and inconsistent delivery performance, partnered with JEC Consulting Services to overhaul its transportation strategy. The 2024 Transportation RFP Initiative delivered over $3.5 million in annualized savings within just three months. Beyond cost reduction, the project significantly improved On-Time In-Full (OTIF) performance and fostered stronger, more aligned carrier relationships. The initiative covered Managed Freight, Truckload (TL), Less Than Truckload (LTL), Parcel, International, and Dedicated Carrier services, setting a new standard for operational excellence and supply chain transparency.
Background & Strategic Rationale
The client, a major domestic and international shipper with an annual freight spend of $12 million, faced persistent cost increases and poor compliance from its existing carrier network. Despite market stabilization, inflationary pressures made cost control a strategic imperative for 2024. These challenges often led to budget overruns, operational disruptions, and reduced customer satisfaction. The company sought a partner to drive both immediate savings and long-term reliability across its transportation network.
RFP Strategy & Design
JEC Consulting Services designed a comprehensive RFP strategy focused on clear, measurable goals: significant spend reduction, improved OTIF performance, and tighter control over accessorial charges. The approach included thorough analysis of total spend across all transportation categories, engagement of key stakeholders to ensure alignment, and advanced analytics using Power BI and Tableau for deep insights into transportation data.
Process & Execution
The execution was systematic and data-driven. Historical transportation data was prepared, growth models developed, and a precise baseline spend established. Both incumbent carriers and challengers were invited to bid, fostering a competitive environment. Multiple bid rounds and intensive negotiations drove down costs and improved service offerings. Carriers were assessed on cost, service capabilities, technological integration, and ESG alignment. The process was supported by an advanced optimization engine, detailed scoring matrix, and dynamic dashboards.
Video Evidence for Claims Reductions in Transport
A key innovation introduced during the project was the integration of video evidence for claims reductions in transport. By implementing high-resolution video documentation at loading and unloading points, the company gained a clear, objective record of shipment conditions throughout the transit process. This allowed for rapid identification of damage or loss, minimized disputes, and accelerated the claims resolution process. The visual evidence also supported carrier accountability and improved overall transparency across the supply chain.
Award & Implementation
The initiative resulted in the introduction of new carriers, removal of underperforming ones, and strategic modal shifts. The project delivered over $3.5 million in annualized gross and net savings, with a significant reduction in cost per mile. Improved OTIF performance and reduced claims were accompanied by increased shipment visibility and the establishment of robust, three-year contracts with clear SLAs and defined penalties.
Video Recording for Shippers
To further enhance operational transparency and accuracy, video recording for shippers was implemented at key stages of the shipping process. This technology enabled real-time monitoring of goods as they moved through the facility and onto outbound trucks. The resulting footage provided indisputable documentation for quality control, dispute resolution, and process improvement, ensuring that both the client and its customers could trust the integrity of every shipment.
Results & Performance Metrics
- Cost Savings: $3.5M+ in annualized savings.
- Service Improvement: Marked gains in OTIF performance and reduced claims.
- Visibility & Transparency: Enhanced shipment visibility and transparent performance tracking via custom KPI dashboards.
- Claims Reduction: The use of video evidence minimized disputes and accelerated resolution.
Challenges & Lessons Learned
The project required adept change management to address internal resistance and carrier pushback. Harmonizing diverse cost and shipment data streams was a significant undertaking. Key lessons included the importance of early planning, leveraging AI for deeper insights, and implementing quarterly benchmarking to maintain a competitive advantage.
Key Takeaways & Strategic Impact
This initiative validated the value of competitive sourcing as a core supply chain strategy. It fostered stronger internal alignment and created a repeatable model with established templates and tools. The broader impacts included improved ESG compliance, enhanced OTIF performance, and a significant reduction in costly expedited orders.
Tools Utilized
- RFP Timeline Gantt Chart
- Bid Boards – Matrix Sample
- Savings by Lane Summary
- Carrier Scorecard Framework
- Cost Curve Chart
- Communication Deck
- Video Evidence Platforms for Transport and Shipping Claims
Conclusion
JEC Consulting Services’ Transportation RFP Initiative delivered transformative results for the client, demonstrating how strategic planning, advanced analytics, and the integration of video evidence technologies can drive significant savings, improve service reliability, and enhance supply chain transparency. This case study serves as a compelling blueprint for organizations seeking to optimize their transportation spend and elevate supply chain performance.
About JEC Consulting Services
JEC Consulting Services is a business consulting firm specializing in supply chain assessment, management, and transformation. With decades of industry experience, JEC Consulting Services helps clients achieve measurable improvements in their supply chain operations through advanced technology integration and proven methodologies.
Contact Information
John Curtis
Phone: (443) 392-2444
Email: jecconsultingservices@outlook.com