How a Mid-Size Manufacturer Reduced Freight Costs by 18%

This automotive parts manufacturer was a classic case of freight management by committee — purchasing handled some shipments, the plant manager booked others, and nobody benchmarked rates or tracked carrier performance. They were paying spot rates on lanes where contract rates were 15-25% lower, and carrier no-shows disrupted their JIT production schedule multiple times per month.

We started by auditing their 12-month freight spend across all three brokers. The data revealed that 65% of their volume moved on just 8 lanes — Dallas to Detroit, Chicago to Nashville, Indianapolis to Charlotte, and five others. These high-volume lanes were ideal for contract rate negotiations.

After consolidating their freight under one account, we negotiated contract rates on all 8 primary lanes, reducing per-mile costs by an average of $0.35. We also implemented our standard carrier vetting process — FMCSA authority verification, insurance confirmation, CSA score review, and on-time performance tracking — which virtually eliminated carrier no-shows.

The results went beyond cost savings. Their plant manager reclaimed 15 hours per week that had been spent making phone calls and chasing shipment status. Real-time tracking replaced the old system of calling drivers for check-in updates. And the 96% on-time rate meant their JIT production line ran without freight-related shutdowns for the first time in years.