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A national premium coffee and tea retailer and wholesaler was experiencing unplanned COGS increases as a result of coffee pricing that had doubled in a 12 month period. They engaged A&M to drive rapid cost reductions to close the budget gap. 

A&M and the client worked collaboratively to identify and implement cost reduction and performance improvements. Actions included developing a national and regional carrier strategy to optimize transportation modes, utilizing spend analytics and market knowledge to conduct a comprehensive competitive sourcing event, implementation of standard carrier pricing agreements, and developing and executing carrier transition plans to assure a seamless transition.

Results included:

  • 32% reduction in outbound freight costs while improving service levels.
  • Monthly carrier performance scorecard helped client to measure performance, improve forecasting capabilities and track/sustain cost savings over time