Couriers and overnight delivery: $250, 000 saved

Janome CFO, Michael McDonagh called in Expense Reduction Analysts to review their annual $1,000,000 expenditure on overnight delivery.  

Janome needed to distribute sewing machines and accessories to over 600 distributors around the country, including the QVC Channel, JCPenney, and a wealth of smaller retailers.
On-time delivery, reliability, and delivery area coverage were top priorities in addition to cost savings. In addition, the technology capabilities of the supplier to integrate easily with the operations of Janome’s three warehouse locations was a prime requirement.  

After a thorough data analysis, and a trial with a competing carrier, more advantageous contractual terms were negotiated with the incumbent supplier, UPS. An additional benefit for Janome was the implementation of electronic invoicing which eliminated the manual processing of data, and created a wealth of additional shipping information, available electronically to Janome’s database for further analysis and reporting. This has been of benefit as we look at the supplier’s performance and assess their compliance with the new contract, said Carol Della Valle, Janome’s office manager.  

Together, Janome and Expense Reduction Analysts monitored the carrier’s shipping performance while Janome enjoyed the 25% savings generated.

Dedicated to creating healthy, ‘fat-free’ businesses, Expense Reduction Analysts is one of the largest specialist cost management group of its type in the world. Since 1983 our sector experts and business consultants have partnered with SMEs, governments and large multinational organisations in 23 countries to eliminate the hidden costs associated with goods and service overheads. Overheads such as printing, telecommunications, cleaning, freight, couriers, travel and many others.Through our unique service delivery model and without risk or any additional cost to our clients, we increase profitability by developing ongoing overhead management processes, measurement tools and cultural change to ensure sustainable and exponential savings.

28-Mar-2008

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