Freight line recovers ten-fold over a
liquidator’s offer by partnering with RMC
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Situation and Challenge
A freight company needed to maximize their recovery on a truck-load of compressors. A liquidator gave the bid for $800. The freight line decided to work with RMC based on the goal to maximize recovery dollars while providing accurate, visible and detailed reporting for OS&D and claims processes.
Success Defined
The carrier defined success as collaboration with a partner that could improve revenue-per-piece, reduce internal resource costs, reduce transportation cost and provide reliable, timely data.
Success Quantified
RMC sold all compressors within six weeks for $7,257.72, an almost ten-fold increase over the liquidator’s $800 off. RMC provided a detailed manifest and sales report giving them ready visibility to information needed to complete the claim process.
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LTL Freight Carrier returns to RMC and increases its net recovery by 71%
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Situation and Challenge
Several years ago, after being offered a higher revenue sharing split; 70% of product sales versus 60% they received from RMC, a national LTL carrier moved to one of RMC’s competitors. Over the next two years the carrier’s net revenues per freight bill and per salvage trailer decreased significantly. The carrier knew the value of its undelivered shipments was not declining and wanted to increase its recovery.
Success Defined
The carrier defined success as collaboration with a partner that could increase average return per freight bill and generate more revenue to help reduce clam expenses.
Success Quantified
By matching product to the appropriate sales venue, over a three-year period RMC raised the recover per freight bill from $86.06 to $171.86, an increase of 99.6%. Under its previous arrangement the carrier would have netted 70% of $86.10 or $60.27 per freight bill. By switching back to RMC, the carrier is now receiving $103.12; 60% of $171.86, a net increase of 71% per freight bill and its average recover per salvage trailer has increased from $7,3840 to $11,641.
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A retailer of casual teen apparel generated $300,000 in revenue, tripling per-piece revenue by working with RMC
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Situation and Challenge
A retailer of casual teen apparel was burdened by product from overstocks, obsolescence and shelf-pulls. With no recovery option they turned to RMC, and together, created the goals to maximize recovery dollars without cannibalizing their existing sales channels.
Success Defined
The retailer defined success as establishing a long term relationship with an organization they trust to take physical control that could increase product recovery, reduce application of internal resources, reduce inventory carrying cost and provide reliable, timely data.
Success Quantified
In the first year, RMC generated over $300,000 in revenue, tripling per-piece revenue, while reducing warehouse inventories and related costs. The retailer consolidated from two distribution centers to one. Retail personnel were able to devote full resources to their core business.
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A security products distributor needed a fiscally responsible way to clear old inventory and make space for new product distribution
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Situation and Challenge
A national distributor of consumer security products used a warehouse space and other resources to deal with inventory rendered obsolete by new models. The company did not want to cannibalize its markets by offering discounted models through normal distribution channels. The distributor also needed to maximize the value of this older inventory to offset its cost.
Success Defined
The distributor defined success as collaboration with a partner that could take physical control and sell obsolete products without affecting existing sales channels, manage accumulated product stock without disrupting its operations and provide transparency and accountability of all received, priced and sold product.
Success Quantified
RMC customizes its inventory system to accommodate the distributor’s needs and worked with the distributor to select those e-commerce venues that minimized impact on its existing customer base. Now, as it identifies obsolete product, the distributor moves it to RMC and frees valuable warehouse space for its core business.
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