IMEC has broadened its service offering by partnering with Expense Reduction Analysts (ERA), an international cost management consultancy. With over 700 consultants worldwide and 230 in the US, ERA delivers savings to its clients in over 30 cost management categories including logistics, supplies, telecom, chemicals, insurance and services.

A $20M manufacturer recently engaged ERA to review LTL and small package freight, a $300k spend for this client. The client's purchasing department has high turnover and PO's were issued to suppliers noting "Ship Best Way" and often instructed the supplier to "Prepay and Add Freight" to their invoices. The result of this process is that there is no control or visibility in the freight spend, so implementing cost management is next to impossible.

After studying 600 shipments and taking into consideration the clients shipping lanes, frequency, load weights, types of commodity and pricing, ERA secured proposals from several carriers operating in the appropriate geographic territory. Included in the RFP process were the client's quality and service criteria to ensure that their needs would be addressed. The estimated implemented savings are 16% and ancillary benefits are that the purchasing department now has a route matrix to ensure that the purchasing department uses the appropriate shipper based on city of origination, weight and contents.

To summarize, with a minimal commitment of client time, ERA has implemented a cost management solution that resulted in reduced freight costs and an improved purchasing process resulting in control, consistency and visibility. Your company could be the next to realize great savings with the ERA - contact Amy Fitzgerald, IMEC Marketing Coordinator, for more information at 309-677-2977 or afitzgerald@imec.org.