£850,000 Savings on Import Duty and VAT

Problem:

A manufacturer was spending over £15,000.00 a month on freight costs, for indirect services. Transit times, door to door, were taking over a week on major routes. The company needed to make changes and considerable savings.

Solution:

Firstly, the current lanes and volumes of freight were assessed and documented. An RFQ (Request for Quote) was created and sent to both forwarders that the company currently used and new, recommended companies within the freight forwarding industry.

Following meetings with the forwarders’ sales executives, the right forwarder to handle the company’s goods was found. Factors aiding in making that decision included the cost of the quote, transit times and communication/value of services.

The nominated freight forwarder was presented to the company’s Directors and Vice Presidents, with details of the reason for the recommendation including how they would be the best fit for the company.

Once the new forwarder was approved internally, the SOP (Standard Operating Procedure) was negotiated together with the legal department. This detailed how the freight was to be moved from door to door and what communication and documents were needed for every shipment.

Results:

Once the SOP was signed off by both parties, the company saved over £100,000.00 in freight costs within their 1st year on a direct service, whilst cutting transit times to 3-4 days in most lanes.

£100,000.00

Freight Costs Saved

3-4 Days

Time Taken