Case study · Healthcare

From $17.4K to $13.1K a month — without switching carriers.

A 9-state medical distributor was spending $17,400 / month with FedEx. We audited 74 days of invoices, found $2,187 in billing errors, then renegotiated their rate sheet. Annual run-rate dropped by $51,840.

$51,840
Annual savings
Locked in via renegotiated rate sheet
$2,187
Recovered overcharges
From 74 days of invoices
24.8%
Rate reduction
Avg. on FedEx Ground
0
Carriers switched
All on existing accounts
§ 01

What we found in week one

We pulled 90 days of FedEx invoices. Two patterns showed up immediately: a residential surcharge applied to 18% of business addresses, and address-correction fees on shipments that didn't need them. Both are recoverable inside 90-day claim windows. Inside week one we filed $2,187 worth of claims.

§ 02

How we renegotiated

Their previous contract was signed in 2022. Carrier list rates had risen 11.8% since then, but their dim factor and fuel surcharge had been moving against them quietly. We benchmarked the contract against 80+ similar distributors in our database, then went back to their FedEx rep with line-item asks: a tighter dim factor, capped fuel surcharge, eliminated DAS, and a 19.5% off-Ground discount.

§ 03

What changed for the team

Their invoice cycle now lands inside Kadix every Monday. Anything off-contract triggers a flagged-line report by Tuesday. The ops team sees one dashboard instead of three FedEx portals. The CFO sees one monthly savings report instead of guessing at quarter-end.

We were spending $17,400 a month with FedEx. In the first 74 days, Kadima found $2,187 in billing errors we'd never caught, residential charges, address fees on shipments that were fine. Then they renegotiated our rates. We're at $13,080 a month now. That's over $51,000 back in year one.

Mariana Ferreira
VP of Operations · Medical supply distributor · 9 states
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