FedEx and UPS invoices are notoriously hard to read. Whether that’s by design or not, it makes it hard to audit your invoices. You may realize your costs are going up, but you don’t know why. That’s what we’re here for.
Shipping contract negotiations are a big part of our strategy to save you money—but our partnership doesn’t end there. Our client, Alen Air Purifiers, is an Austin-based company that sells True HEPA air purification products. Their air purifiers and filters help remove allergens, dust, mold, bacteria, aerosolized viruses, and more from homes, schools, and businesses.
A Reveel client for several years, the team at Alen has gone through contract negotiations twice, most recently saving them an additional $240,000.
Air Purifiers on the Frontline
Alen had steady business growth, but the emergence of the coronavirus last year put their air purifiers in high demand. In addition to an increase in direct-to-consumer sales, purchases from businesses and schools skyrocketed.
The increase in business, coupled with different shipping needs, signaled to Reveel and the Alen team that it was time to renegotiate their shipping contract.
Renegotiating Alen’s Shipping Contract
John Blyzes, Alen’s Director of Demand Planning, inherited the Reveel partnership from a predecessor and worked with our analyst, Greg Merz, to renegotiate their contract.
Due to high demand in the B2B space, the team worked together to bundle LTL shipping in their new contract with FedEx. After several conversations, John signed a new contract with FedEx that saved them an additional $240,000 in shipping costs.
John said that the Reveel team knew what kind of discounts to ask for and how low they could get the rates. It gave him the confidence to push back harder for better rates.
“[I thought], there’s no way they’re going to do that. And they did,” said John.
In addition to the significant discounts Greg was able to secure, John appreciated the time he saved personally—especially during such a high growth period. “I saved myself a weekend and maybe a couple of nights,” said John.
But our partnership doesn’t end with the contract signing—and neither does this story.
A $100,000 Shipping Error
Part of Reveel’s services include ongoing invoice audits and QA to ensure you get the discounts you’re owed.
After a few weeks, Greg noticed Alen’s bills weren’t as low as they should be, so he investigated. A deeper look showed that one of the agreed-upon discounts wasn’t reflected in Alen invoices.
How much was Alen owed? Just under $100,000.
After investigating, Greg noticed that Alen was missing out on the earned discount, which was applied based on how much they spent with the carrier. Without that savings, package costs were up nearly 20% for around four weeks.
Fixing a Shipping Error
Reveel’s service didn’t stop once we notified John of the overcharge. In addition to investigating and identifying which discount was missing, Greg explained the problem to John and helped him craft his messages to FedEx to ensure easy reimbursement.
“We didn’t stop with ‘something is missing,’” said Greg. “We made sure [Alen] knew what was missing, why, and how to fix it.”
This included pulling out examples of overcharged packages and highlighting pieces of the contract that detailed the missing discount. With Reveel’s help, John contacted his FedEx rep and got what the company was owed.
We’re Here for You
Errors aren’t common, but they happen. And when they do, they can be a costly mistake. While they’re more likely after you’ve signed a new contract, they can happen at any time.
That’s why we act as a watchdog looking over your shipping expenses after your shipping contract is signed. At Reveel, you get more than a one-time consultant. You get a true shipping partner.
Contact one of our analysts today for your free invoice audit.
The Reveel App uses AI and machine learning to provide an unparalleled look into what’s impacting your bottom line. Through invoice audits, peer benchmarking, and rate modeling/simulations, you can see the health of your operation and assess pricing changes from parcel carriers like FedEx and UPS. Sign up for a free Reveel account today to see how you can leverage automation to synthesize your data, ship more for less, and reduce the time needed to identify issues and action items.