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EBIT

Case Study

Delivery #3

Ebit has run many courier projects for clients across both the wholesale B2B and B2C retail spaces for many clients. Following the opportunities and challenges presented in the space over recent years we have continued to help clients benefit from innovation and service improvements whilst focussing on delivering value.

Client Overview

Ebit has worked with a growing home and kitchenware retailer to review their current courier provisions and services provided. With a strong history in both bricks and mortar stores and catalogue / on-line retail, our client has experienced strong growth and increased demand for these services

Our Approach

We worked with our client to understand the current picture of their courier relationships, analysing their current and historic usage data to determine an “as is” picture. By working with internal stakeholders we were able to factor in their plans for the business as well as incorporating our extensive benchmark data and category knowledge. This allowed us to produce a clearly defined specification and tender process.

The existing spend was spread across a number of suppliers with a single preferred supplier responsible for 90+% of the delivery and spend. With the incumbent suppliers contract up for renewal the initial offer was to increase annual costs by 3% despite a decrease in volumes shipped post the pandemic boom. By reviewing their offering and rates against our benchmark data we were able to identify opportunities to update the services delivered and reduce the costs associated with this area.

By approaching the market with a formal tender we were able to narrow down the options to 2 suppliers, 1 of whom was the incumbent. They had significantly improved their offer and terms of business and so the client made the decision to remain with them on these new terms.

Results

  • 6.3% cost saving (£294k) with reduced supplier base resulting in less back office processing
  • Improved terms to reflect realistic volumes and renegotiation of penalty clauses for failure to hit these new volumes
  • Agreed Peak delivery uplift levels increased from 200% to 500%
  • Service and tracking visibility enhancements for customers
£294k
Cost Saving