Efficiencies and discounts lower small package freight expenses $87,000

The family-owned jewelry business started with a single store at the mid-century and today has 65 stores in 18 states, a national direct-mail catalog and an e-commerce site.

 

Jewelry store customers buy fewer pieces

As consumers scale back on purchases, retailers of luxury high-end items are feeling the effects. Our client, a retailer of fine jewelry, had already closed 15 of its lower-producing stores when it asked Expense Reduction Analysts (ERA) to review its small package freight expenses.

Deliveries to customers of its remaining 65 stores, direct-mail catalogs and website were costing the retailer more than $280,000 a year.

One savings leads to another

ERA small package freight experts analyzed the jeweler’s shipping requirements and patterns. Among their discoveries: Nearly a third of the packages sent air express would arrive within the same time frame using less expensive ground service.

The change in service also helped the client remain within its per-airplane insurance limits.

ERA Consultants negotiated improved discounts with the incumbent. These higher discounts, in turn, lowered the fuel surcharges, which are calculated as a percent of net charges.

ERA experts are looking for more savings opportunities for the client in information technology, office supplies, merchant card fees and payroll/HR administration.

The client saved $87,000 a year and collects credits for late deliveries.

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