Reveel Resources

Customized Savings for a Lifestyle Brand on the Rise

Customized Savings for a Lifestyle Brand on the Rise

Challenge

When Reveel was referred into Nixon, the brand had recently divested from its parent company, Billabong. They were looking to establish new vendor contracts, including one with UPS. Since Billabong was a much larger account, UPS had originally told Nixon that they could not match their old shipping rates. Nixon looked to Reveel to help them customize a carrier contract for their unique shipping characteristics.

Solution

After our initial analysis, Reveel was confident we could help Nixon negotiate a contract with UPS that was not only as good as Billabong’s, but better. We utilized Billabong’s pricing as a baseline in negotiations and due to Nixon’s shipping volumes and other factors were able to significantly beat the parent company’s carrier contract costs. In addition to our Contract Analysis & Negotiation services, Nixon continues to take advantage of our Reporting & Analytics tools, making use of our shipping intelligence to get real-time average costs per shipment and ensure they are not losing money on orders.

Their size and scope is unique. They’re more of a sniper rifle than a shotgun. Their deep regional area of expertise is important. Other companies don’t know my region or are promising me things I can’t get.

Michael Villa
Supply Manager (Formerly)
Nixon

Results

To Nixon’s great satisfaction, Reveel worked with the company to restructure their UPS contract, generating 19% savings by focusing on areas within the carrier contract that were specific to their needs and product type. The sheer volume that Nixon ships, much of it provided at no cost to their customers, means that any reduction in costs helps to improve both their margins and the
product itself.

About Nixon

Nixon is an American watches, accessories, and audio brand founded in 1997 in Encinitas, CA. Focused on the youth lifestyle market, Nixon’s range of team-designed, custom-built products was first introduced at retail via independent board-sport retailers, including surf, skate, and snow shops. The brand’s range and popularity quickly grew to include distribution in specialty boutique and fashion stores.