Distribution Solutions, Inc. is currently offering a no cost, no obligation confidential survey and analysis of your present distribution program.*
This analysis allows DSI to quantify any existing margin in present expenditures for commercial freight services.
Our proprietary database contains extensive information on commercial freight carriers net rate levels offered to thousand of shippers and receivers through RFP (request for proposal) processes. Our analysis records up to twenty different data fields for each transaction. A maximum of five hundred transactions are entered to create a model of your company's distribution expense patterns and service requirements. The specific components of your companies distribution program, as recorded in our analysis, is then compared to our proprietary database to position and rank your expenditure levels. Your expense levels by carrier, by mode, by direction, by geographical and service requirements are then measured against a 'Market Norm' expenditure level to chart dollar and percentage variations.
If significant margin in present expenditures is evidenced, a proposal to capture the projected savings is then presented. The proposal addresses the development, implementation and administration of a managed distribution program as the means to capture projected savings.
DSI substantiates savings achieved through a re-rating of the original five hundred transactions used in the analysis. The original five hundred transactions are re-rated using pricing levels achieved through our RFP process, and then are compared to the actual historical expense of those same transactions. In this manner projected savings are reconciled with future savings.
The average projected reduction of commercial freight expense for all surveys conducted to date is 19.65%. The average annual savings of first year programs completed is: 18.65%.
Freight costs are often perceived as minimal or even overlooked as an area of opportunity. This revealing chart provides some insight into the importance of managing commercial freight costs and its impact on profitability.
The following is an illustration of the equivalent sales required to equal a 20% reduction in commercial freight expense at operating ratios of 90% and 95%.
| Commercial Freight Expense |
20% Reduction in commercial FreightExpense |
Equivalent Sales@90% Optg. Ratio |
Equivalent Sales@95% Optg. Ratio |
| $100,000 |
$20,000 |
$200,000 |
$400,000 |
| $250,000 |
$50,000 |
$500,000 |
$1,000,000 |
| $750,000 |
$150,000 |
$1,500,000 |
$3,000,000 |
| $1,000,000 |
$200,000 |
$2,000,000 |
$4,000,000 |
| $1,500,000 |
$300,000 |
$3,000,000 |
$6,000,000 |
| $2,000,000 |
$400,000 |
$4,000,000 |
$8,000,000 |
| $4,000,000 |
$800,000 |
$8,000,000 |
$16,000,000 |
| $6,000,000 |
$1,200,000 |
$12,000,000 |
$24,000,000 |
| $8,000,000 |
$1,600,000 |
$16,000,000 |
$32,000,000 |
| $10,000,000 |
$2,000,000 |
$20,000,000 |
$40,000,000 |