Big Rock Sports, a sporting goods distributor, relies on providing goods to their network of small sporting goods stores quickly and efficiently—which depends heavily on their chosen shipping carrier. Having recently switched from UPS to FedEx, they reached out to Reveel for guidance in renegotiating their shipping contracts—and ended up saving hundreds of thousands of dollars a year.

Continue reading to see how we partnered with them for the best results.

Highlights

  • 14% reduction of overall transportation budget
  • $833,000 projected savings, annually
  • 3 month negotiation

Who Is Big Rock?

Big Rock Sports is the premier sporting goods distributor in shooting, fishing, camping and taxidermy.  They serve local retailers, facilitating their access to over 190,000 product SKUs.

Fully immersed in their clients’ world, Big Rock lives the outdoor lifestyle and provides additional support and services to enable their clients’ success. 

The Road to Reveel

Mark Charnot joined Big Rock in 2019 as their VP of Supply Chain and immediately started gathering their contracts to try and uncover ways  to lower their shipping costs.

Previously, Big Rock was a long-term UPS customer. But when the time came to renew their contract, negotiation tensions strained the 20-year relationship, and they parted ways. Big Rock reached out to FedEx, and had been in partnership for just under a year when Reveel entered the playing field.

The Negotiation Process

Big Rock’s business relies on a wide range of shipments, from low-cost packages to large, oversized orders. Because of the type of the nature of many of their products being firearms, they often required direct and adult signatures when fulfilling direct to consumer orders. We saw these specific surcharges as opportunities for savings, and drafted our plan accordingly.

How We Approached the Shipping Negotiations

  • Mark’s new position: Because Mark is new to the organization, it was a natural way into the contract negotiations.
  • Big Rock’s acquisition: Not only does Big Rock provide a lot of business (they ship to over 15,000 retailers), but a recent acquisition meant they were likely to ship even more packages. With costs expected to go up, Big Rock was looking for ways to minimize expenses—and the added volume provided a bargaining chip for negotiations.
  • Big Rock’s shipping switch: Since Big Rock had recently switched from their long-term shipping partner, we reached out to both providers to see their best proposals.

We provided backend management of negotiations, sharing recommendations and comparing their various contracts in one clean document.

The three-month process included:

  • An in-person meeting between Mark and the carriers, where we coached Mark beforehand on talking points and what to avoid saying.
  • Two rounds of price negotiations.
  • One additional round to negotiate final terms of the contract.

The Big Rock Bonus

To really make a difference in Big Rock’s bottom line, the target savings was 11% of their total transportation spend, estimated at about $663,000 in annual savings. With smart negotiations, Big Rock shaved 14% off of their entire transportation budget—an estimated annual savings of $833,000.

“You bet on yourselves to give us the best rate you can, then you fight for additional savings… I think it’s awesome,” said Mark.

Building a Partnership

We’re coming to the end of the first year of a three-year partnership and Reveel and Big Rock continue to work together to keep shipping costs low. We’ll continue to audit their invoices to ensure Big Rock gets their maximum discounts and all of their contract conditions are met. Additionally, as carriers adjust their rates multiple times per year, we’ll ensure Big Rock Sports continues to get the best deals.

Are you looking to renegotiate your shipping contracts?  Turn to the experts and leverage our years of experience saving companies hundreds of thousands of dollars in transportation costs.

Reach out to us today.

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