Selling Indirect Cost Calculator to Owner/Senior Manager

The client is a well-known distributor of skateboards and apparel throughout Canada to major retailers. The complex supply chain included inbound freight consisting of a wide array of products coming in from Asia Pacific and California and outbound freight that ships to retailers all across Canada.

Supply Chain Management Challenge:

The client's previous logistics provider had worked with them for many years. Although they had a strong understanding of the client's overall supply chain, the client did not sense that they were getting any additional value or remarkable customer service.

Management had never taken a closer look at their overall transportation spend to determine if they were getting good value. Tasks were primarily handled by Junior Accountants and the Warehouse manager, neither of whom had formal training in logistics, meaning a large portion of their workday was consumed by shipping tasks.

Supply Chain Management Goal:

  • To analyze overall transportation costs across all modes and generate an audit to uncover unrealized cost savings.

  • To implement an Indirect Supply Chain Cost Calculator, illustrating the time and labour employees were currently spending on supply chain activities.

  • To outsource supply chain management, allowing employees to focus on revenue-generating activities.

Supply Chain Management Result:

MC Freight performed a comprehensive Freight Audit and uncovered savings of $74,700 per year. Simultaneously, we identified $10,670 in savings on labour costs.

By identifying the substantial time spent on logistics, the Junior Accountant and Warehouse Manager were able to pivot to other necessary functions. This saved the customer in the long run by avoiding the need to hire additional staff to cover those growing needs.