Case study · Distribution

Three warehouses, one rate sheet. $26,740/month back.

Three regional warehouses had been negotiating with carriers separately, each at sub-tier volume. We pooled them under one contract, drove avg. cost per label from $6.82 to $4.91, and saved them almost $27K a month.

$26,740
Monthly savings
Across 14,000 shipments
$6.82 → $4.91
Avg. cost / label
1
Unified contract
Down from 3 separate accounts
0
Warehouses moved
All on existing infra
§ 01

Why three contracts cost more

Each warehouse hit a carrier's third tier on its own — but the consolidated volume would have qualified for the top tier. Carriers don't proactively offer that consolidation; they price each account separately. The result: ~$2/label of tier-pricing left on the table at every warehouse.

§ 02

How we consolidated

We brought all three warehouses under a single corporate account structure with shared volume reporting. The carriers reissued rate sheets reflecting the combined book of business — top-tier discount, capped surcharges, lane-specific rates for the high-frequency origin-destination pairs.

§ 03

What changed downstream

Each warehouse's GM still sees their own performance, but the carrier sees one customer. Annual run-rate is down ~$320K. The CFO replaced three separate carrier review meetings with one quarterly call with us.

Our three warehouses had been negotiating with carriers separately. Kadima rolled all that volume into one contract and our average cost per label fell from $6.82 to $4.91. Across 14,000 shipments a month, that's almost $27,000 we were giving away.

Derek Hollis
COO · Auto parts retailer · 3 warehouses
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