When carriers introduced rate changes in 2015, based on a package size, New-Tech was ready to help by analyzing our customers’ cartons and shipping patterns to deliver significant freight savings.
- Small package ground shipments are now priced on their size or dimensional weight, just like air shipments.
- Businesses are rewarded when using smaller, fuller boxes, making intelligent packaging a strategic cost-saver.
Challenge: New-Tech was asked by one of Memphis largest medical device suppliers to uncover ways to reduce their shipping costs. Dimensional weight savings emerged as a significant cost driver.
Solution: New-Tech evaluated all of the packages and respective dimensional weights, including returnable totes and suitcases, adjusting sizes or substituting with alternative designs.
Benefit: Three broad project areas emerged with direct cost reductions of $300k, $700k and $100k – a total annual savings of $1.3 million in freight costs.