Page 198 - Schooley Mitchell Marketing Manual

SCHOOLEY MITCHELL
MARKETING MANUAL
Cheat Sheets – Less Than Truckload
Manual Revised: April 3 2025 Confidential
- 193 -
Implication Questions
Less Than Truckload Cheat Sheet
Do you have software to compare tariffs with multiple carriers using different base rates?
Do you have software to optimize pricing based on changing market opportunities as well as your changing
shipping requirements?
Savings Opportunities
Negotiating improved discounts to transportation services.
Negotiating reduced net package minimums.
Negotiating improved Freight of all Kinds (FAK) terms
Real Client Stories
Manufacturing Company
Anil is the owner of an aluminum component manufacturer and supplier. His team specializes in custom precision manufacturing with strict quality control measures. In the warehouse, they ensure the work is packed to protect the goods during shipping so that they are received on time and in top condition. They had good relationships with their sales representatives and trusted that they were being treated fairly.
However, when Schooley Mitchell approached with its unique value proposition, Anil saw a risk-free opportunity to ensure no money was being left on the table. After Schooley Mitchell’s initial small-package analysis uncovered about $2,000 in monthly savings with no change in vendors required, Anil agreed to also have Schooley Mitchell look at his company’s less than truckload (LTL) accounts.
Anil’s LTL accounts are critical to the business’ smooth operations. Large shipments are commonplace and represent some of the company’s most important customers. Some favorable terms had already been negotiated on these accounts with trusted vendors to rate his LTL shipments on the lowest available base rates while ensuring quality service. We worked within the existing framework to allow Anil to maintain the high level of service to which he was accustomed, while improving discounts to create an approximate annual savings of $41,000.
Anil was happy to implement the improved pricing on his accounts to greatly improve cost efficiency for the business. He is now happily paying a significant flat quarterly fee for Schooley Mitchell to continue monitoring his accounts and ensure that no opportunities continue to pass him by.
Just like the experts on his team who ensure they deliver high quality parts, we became Anil’s experts when it came to his shipping expenses. It goes to show the value in utilizing trusted, valuable resources specializing in the various aspects of your business.
Custom Part Manufacturer
Cathy is the controller of a custom part manufacturer serving the medical, automotive, electrical and other various industries. While pallet-based shipping represents a relatively small fraction of the business’ shipments, the cost adds up very quickly on these larger shipments.
Cathy and her team set up accounts with some of the largest carriers in the industry and trusted that they
were being treated fairly with the discounts they were receiving. This may have been true at first, but even as the business established a shipping history with its carriers, the industry continued to become more and more competitive. When we completed our review of Cathy’s shipping history we determined that improvements were possible. Sure enough, we were successful in renegotiating with her existing primary carrier to drive a 30% cost savings. On top of that, we found 20% on her small package shipping accounts, again with no carrier changes required.
Cathy was relieved to find a path to improved profitability without having to upset any existing processes or relationships. As we begin our post-audit process, we look forward to providing many great savings reports to help make Cathy a hero with upper management.
This proves that vendors can’t be trusted to proactively bring savings opportunities to their clients as those clients evolve.
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