Reducing transportation expenses does not always require drastic changes.
In many cases, companies can lower freight costs significantly by improving processes, strengthening carrier relationships, and gaining better visibility into their supply chains.
This case study highlights how a mid-sized manufacturer reduced freight costs by 20% in one year while improving service levels and increasing shipping efficiency.
The manufacturer produced industrial equipment and shipped products throughout North America and overseas.
Its transportation network included:
The company had experienced several challenges:
Management realized that transportation expenses were increasing faster than revenue.
The company began by reviewing twelve months of freight data.
The analysis identified several problems:
The review also showed opportunities to improve:
Data visibility became the foundation of the entire cost-reduction initiative.
The company had relationships with more than twenty transportation providers.
Many of them handled only a small percentage of freight.
By reducing the number of providers, the company gained:
According to the Council of Supply Chain Management Professionals (CSCMP), strategic transportation partnerships often result in lower costs and improved operational efficiency.
The manufacturer implemented carrier scorecards to track:
Underperforming providers were removed from the network.
High-performing providers received additional freight opportunities.
This process significantly improved service consistency.
The company discovered many shipments could be combined.
Instead of shipping multiple small orders, they began using:
As a result, transportation costs decreased substantially.
Shipment planning also became more efficient.
International shipments represented a significant portion of transportation spending.
The manufacturer worked closely with an experienced international logistics partner to improve:
BMI Shipping helps companies optimize international transportation through customized shipping solutions and improved shipment visibility. Learn more on our International Shipping Services page.
The company relied heavily on premium transportation because of poor planning.
This included:
By improving forecasting and inventory management, expedited shipments decreased by nearly 40%.
This alone generated significant cost savings.
Transparent communication became a major focus.
The company improved communication between:
Better communication reduced:
Strong communication is one of the most effective ways to improve international cargo management and global shipping solutions.
After twelve months, the manufacturer achieved:
Most importantly, the company achieved these results without sacrificing service.
Many businesses assume freight costs are uncontrollable.
However, this case study demonstrates that significant savings can come from:
The U.S. Department of Transportation Freight Program emphasizes that data-driven transportation management can improve both efficiency and cost control.
BMI Shipping supports manufacturers with:
Our team works with manufacturers to improve transportation performance while controlling costs.
Learn more about our experience on our About BMI Shipping page or contact our team through our Contact Us page.
Reducing freight costs does not require cutting service levels.
Instead, companies that focus on visibility, communication, and strategic transportation management often achieve the greatest savings.
For this manufacturer, improving processes and building stronger logistics partnerships resulted in a 20% reduction in freight costs within just one year.
