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.
Logistics Management and Transportation Analysis
JEC Consulting Services addressed a major New Jersey industrial company’s rising freight costs and inconsistent deliveries through its 2024 Transportation RFP Initiative. By strategically analyzing all freight categories—Managed Freight, TL, LTL, Parcel, International, and Dedicated Carrier services—the initiative yielded $3.5 million in annualized savings within three months. This comprehensive approach also significantly improved On-Time In-Full performance and strengthened carrier relationships, underscoring the value of focused logistics management and transportation analysis in achieving operational excellence and cost efficiency.
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.
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.
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
Conclusion
JEC Consulting Services’ Transportation RFP Initiative delivered transformative results for the client, demonstrating how strategic planning, advanced analytics, and a comprehensive cost analysis approach 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 achieve substantial cost reduction in relocation and overall 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