Challenge
A leading third-party logistics (3PL) provider struggled to manage parcel shipping operations efficiently. Their reliance on Excel spreadsheets for tracking revenue and customer markups led to limited real-time visibility into profit margins and operational performance. The 3PL’s revenue depended on reselling discounted FedEx rates with markups, but outdated processes made managing contracts, calculating markups, and ensuring transparency challenging. Traditional BI tools couldn’t meet their need to provide customer-facing visibility without revealing sensitive FedEx rates.
Solution
Reveel implemented its advanced Shipping Intelligence™ Platform, tailored to address the 3PL’s unique needs:
- Contract Optimization: Negotiated more competitive FedEx rates, boosting profitability while maintaining competitive customer pricing.
- Custom Markup Calculation: Delivered precise, customer-specific markup visibility through Reveel’s Analytics Hub.
- Real-Time Revenue Tracking: Enabled data-driven decisions with tools to monitor over 400,000 annual shipments, ensuring consistent margins exceeding $2 per shipment.
- Customer Transparency: Set up a secure, customer-facing analytics platform that shared marked-up costs while safeguarding proprietary data.
Results
- Enhanced Profitability: Optimized FedEx contracts and precise markup calculations maximized margins.
- Operational Efficiency: Real-time analytics replaced spreadsheets, streamlining operations and improving accuracy.
- Customer Trust: Transparent, controlled visibility into shipping costs strengthened relationships.
- Informed Decision-Making: Month-to-month revenue tracking empowered proactive and strategic choices.
Reveel’s solutions empowered the 3PL to achieve sustainable growth, operational excellence, and a competitive edge in the logistics industry.
