TELECOMMUNICATIONS

The following case study demonstrates how Fairrington worked with a Fortune 500 company to deliver significant savings.

THE SITUATION

Recently a prominent telecommunications company approached Fairrington for a comparative analysis on postage savings vs. freight costs.

The preliminary findings based on general historical information provided to Fairrington showed that the company was saving about 50% of the BMC entry discount. The other 50% was allocated for freight charges.

Fairrington believed there were additional savings and efficiencies to be realized.

THE SOLUTION

After extensive testing which included presort analysis, SCF drop ship optimization, and date management, Fairrington presented its customized program which:

• Lowered the overall freight spend by $14.00 – $15.00 per thousand.
• Increased the net amount of postage saved by a factor of 2.

THE SAVINGS

The net effect for one business segment alone was annualized savings of over $2,000,000.00.

AND THERE’S MORE…

THE SITUATION

This same telecommunications company (a different business unit) was mailing B – B and paying 1st class postage for the service levels afforded by 1st class.

THE SOLUTION

Fairrington was able to convert the 1st class to Standard A and maintain in-home dates through an expedited program utilizing extensive SCF entry. This program effectively:

• Lowered postage from $320.00 per thousand to around $190.00.
• The associated freight cost was in the $50.00 – $70.00 per thousand range for a net effect of savings of about $60.00 per thousand.
• As production schedules were later adjusted to account for Standard A service levels, the freight costs came more in line with the surface transportation costs of $4.00 – $6.00 per thousand.

THE SAVINGS

This program saved the customer over $750,000.00 after all costs in one quarter.