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Local Courier - Case Study 3

Printing Company - Sydney/Melbourne

Our client is a large national print company that has a requirement to cost effectively manage multiple courier providers of "point-to-point, on-demand, hourly hire" metropolitan courier services within Sydney and Melbourne.

As a result of aquisitions of competing businesses, a network of accumulated courier companies resulted in an extensive supplier list.

T&DC's brief was to identify suppliers that could satisfy the client's precise product handling and delivery requirements as well as give the opportunity to consolidate.

The main issues to be considered were:

  • Time sensitive deliveries throughout metropolitan Sydney and Melbourne.
  • Were the incumbent suppliers the best for the job?
  • Was there an incumbent supplier that could provide the services nationally?
  • The need to review this area of expenditure was necessary due to rising costs.
  • Was there a better strategy that could be applied to assist with cost reduction?
  • An IT solution must be constructed to allow for total integration with the existing ERP system nationally, giving standardised processes.

Background and Challenges

A large number of various suppliers were already in place. The challenge was to identify the "Best Fit". If this related to a single supplier solution, then this supplier must be willing to work to reduce costs further as a "Solution Provider" not just providing cheaper rates.

Throughout the process it became evident that a single supplier from one of the incumbents may be able to support our client's needs, but alternate suppliers were not to be discarded in the overall consideration.

Savings were necessary but in all "Solutions outcome based reviews" the greatest benefit that T&DC can bring to the table is to ensure that the emotion is removed from the decision making. In a lot of cases and without the industry knowledge T&DC has accumulated over many years experience, a client may take the "best dollars" option as opposed to the "best fit" option.

Final Results Achieved

This courier review brought about many distinct savings:

  • A reduction in the number of suppliers from nine to one national supplier.
  • Dollar for dollar savings plus on-going management to enforce further cost reduction through better utilisation and better fleet management options on a day-to-day basis.
  • A national purpose built IT solution which standardised the way couriers were booked throughout every division of the business.
  • Support and account checking from T&DC which saved thousands more in incorrect charges.
  • Reporting from the supplier to assist with decision making to achieve ongoing savings.
Previous Per Annum Spend Estimated New Per Annum Spend Estimated Per Annum Saving
$850000.00 $638000.00 $212000.00