Global enterprise saves $188k annually while preserving key relationships.

The Challenge

When Pace Shave Inc. based in San Diego and Dorco, a South Korean company, co-invested in a joint venture, the result was a winning combination of Dorco’s razorblade manufacturing and Pace’s distribution skills applied to retailers across the United States and Canada. Pace Shave sales began growing at an exponential rate, and President, Ken Hill knew there had to be ways to cut costs without impacting his already lean workforce. He also wanted to free up additional capital to invest further in Pace’s business model. The company simply didn’t have enough people to locate and implement cost saving measures, so they asked us to assist them.

The Solution leading to great results!

 

Our team of cost reduction specialists immediately went to work with their accounting department.  We determined that they were spending over $1 million a year on truck freight for product delivery so we introduced them to other freight carriers who had better pricing. But we also listened to their operations team, who wanted to continue to use their current freight supplier. Working across departments, our team leveraged the competitive tension created through other bids to negotiate a better deal with their current supplier. We helped Pace with the new pricing negotiations so that they could immediately begin ordering using the new and reduced costs.

In addition to saving Pace Shave over $188,000 annually, we also provided their operations and accounting team with support throughout the process. For example, we met with Pace Shave’s traffic manager, to provide one-on-one support as the pricing changes were implemented. Our team also completes a monthly audit to ensure the process runs smoothly and that the new pricing changes are actually used each month. As a result, Pace was able to maintain an important supplier relationship while saving almost 16% annually in freight costs.

 

"The team at ERA was instrumental in helping us match our existing carriers' regional strength to our unique shipping lanes. We are thrilled to achieve these results while maintaining our key relationships." - Ken Hill, CEO of Pace Shave

 

 

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