case studies
Optimizing Waste Management Costs for a Leading Manufacturer
Success stories
Client Overview
A leading manufacturing company struggled with escalating waste management expenses tied to an outdated 15-year contract with its incumbent provider. The agreement included an auto-renewal clause, limiting the client’s ability to renegotiate terms. With multiple facilities and diverse service requirements, the company faced inconsistent billing and unexpected charges, while also lacking clear visibility into spending, service levels, and equipment utilization. These challenges created financial uncertainty and hindered cost control efforts.
the challenge
The Client faced several key issues
- Lack of Spend Visibility
No clear understanding of total spending across FedEx and UPS.
- Fragmented Carrier Relationships
No engagement with assigned FedEx and UPS representatives.
- Diverse & Unstructured Spending
The company lacked a consolidated approach to parcel logistics.
- Unpredictable Costs
Monthly invoices fluctuated due to accessorial charges.
- Limited Internal Resources
The organization lacked the expertise and time to negotiate better agreements.
Sourcing Insights' Solution
At Sourcing Insights, we leveraged SourcingShark technology and strategic negotiation expertise to drive cost savings and contract improvements:
- Comprehensive Spend Analysis
Mapped the client’s existing parcel spend, identified inefficiencies, and outlined cost-saving opportunities.
- Strategic Partner Alignment
Secured a trusted partner specializing in parcel logistics for enhanced visibility and efficiency.
- Tailored Negotiation Strategy
Designed and executed a custom contract strategy to secure a dedicated, long-term agreement with the optimal carrier.
- Technology-Driven Oversight
Implemented a weekly reporting system to monitor charges and ensure compliance with negotiated rates.
Results & Impact
Through strategic renegotiation, Sourcing Insights delivered significant cost reductions and contract improvements:
- 30% Cost Reduction
Achieved $300,000 in annual savings, reducing total costs from $1.3M to $1M.
- Improved Cost Transparency
Implemented monthly savings reports for ongoing visibility and control.
- Strengthened Supplier Relationship
Retained the incumbent provider under improved terms, ensuring seamless operations.
- Optimized Contract Terms
Secured a two-year agreement with a $600,000 total cost reduction.
- Auto-Renewal Eliminated
Gained full control over contract extensions and future negotiations.
Strategic Takeaway
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