Hodell-Natco Case Study

At first, I was blown away by the data and excited, then I started getting disgusted at seeing the things we were doing to that were costing us money … Now that we see the data so easily, we have an advantage and an opportunity.  We identified a way to use the data that can save us over $60,000 in supplier costs.    – Dan R. – Purchasing Director

Hodell-Natco Industries is a full-service wholesale distributor of fasteners and chain. Stocking over 40,000 industrial fastener and chain items, they provide customers with expertise in sourcing hard-to-find items. Hodell-Natco spends over $650K annually on parcel, 82.6% ground with 12.8% Next Day shipments. Two-thirds of the spend is on inbound or third-party shipments, as a large amount of the outbound shipping is shipped collect.

In 2018, Hodell-Natco was gathering data into Parcel BI to negotiate a new contract. Parcel BI’s Contract Edge helped highlight some important contract negation points between both UPS and FedEx. One thing that was exposed that one of their DC’s gets hit with a delivery area surcharge on all shipments, so that was addressed along with rates, incentives and waivers.

They are executing a new contract that will save of over $75,000 annually.

Additionally, Hodell-Natco was made aware of the impact vendor shipping practices is having on their profitability. Parcel BI exposed over $10,000 in declared value charges and they are now adjusting and communicating policy improvements to suppliers. Additionally, they have exposed bad practices and bad data that was costing them over $1,000 in invalid account fees and $2,300 in avoidable address correction charges.

Parcel BI also empowered Hodell-Natco to identify suppliers that were shipping collect and see what that was costing them. Negotiating price reductions from suppliers is challenging, but they realized that they can instead ask for free shipping. The suppliers are more agreeable to give free shipping than price concessions, but it is a bigger savings for Hodell-Natco to get free shipping. Without Parcel BI features sender/receiver grouping, it would be impossible to quantify.

Upon realizing the savings thus far, Hodell-Natco will be taking advantage of Parcel BI’s Refund Audit and recapturing funds otherwise lost, and that alone will provide ROI on Parcel BI, further justifying the value of product.

 

Customer: Hodell-Natco Industries

Industry: Industrial Distribution

About:  A full service distributor of hard to find fasteners and chain.

 www.Hodell-Natco.com

 

To Learn More, Contact Us today or...

Schedule a Demo

 

What are you spending on your parcel? How much can you save with Parcel BI (analytic tools made for parcel)

Most Recent

Complete the Process with Parcel BI Audit

By Parcel BI
September 10, 2019 Category: Parcel BI V. Audits

Parcel BI goes way beyond you average audit, but audits are still an essential part of tracking and using your data.

CONNECTING PARCEL COSTS TO SALES MARGIN

By Admin
August 22, 2019 Category: Parcel

What Makes Parcel BI Different? Parcel BI does a lot of things differently that no other parcel cost management business can do. But one thing that really separates us is our parcel margin analysis tool. This clearly shows how the final/ true cost for delivery impacts the margin on an order, and can compare it to expected costs, if known. Parcel Margin Analysis Your true parcel cost is after all your accessorial fees, late fees, address corrections, and other issues are eroding your margin. Too often, this can vary significantly from what the expected, or manifested, cost might have been when a shipment was prepared and calculated. We can connect your sales data and what you were billing for your customers. If you were billing, or maybe youre giving shipping away for free, or maybe youre doing prepay and add. Regardless of how you account for the cost to deliver your goods, there is an impact the profitability of every sale you ship. We help you analyze that impact to see if youre

ABC Co. vs. A B C Company… How Parcel BI solves Address Grouping

By Parcel BI
August 14, 2019 Category: Savings, Parcel

An issue that many companies face when looking at their parcel data is spotting trends by receiver or shipper. Even the simplest mistakes or entries can cause issues with your data.

Categories
Savings (5)
Parcel (5)
BI Solutions (4)
Parcel BI (4)
Corrections (3)
Parcel BI V. Audits (2)
Cost Savings (2)
Parcel Forum (2)
Parcel Delivery (2)
Powerful Demos (2)
Business Intelligence (1)
Shipper Of Record (1)
Late Fees (1)
Vendors (1)
General (1)
UPS (1)
Case Study (1)
Cost Reductions (1)
DIM (1)
Chargebacks (1)
+ Show More
© , Vizion Solutions, LLC | Powered by Virteom Logo Virteom