LTL & Small Parcel Transportation Analysis  RFP, Negotiations & Contracting

Company Information
Consolidated Electrical Distributors is the largest privately owned wholesale distributor of electrical equipment. It groups 560 locations in the 48 states, Alaska & Hawai. It is the most profitable electrical distributor in the industry with a decentralized business model of autonomous profit centers

Business Problem

• Transportation had never been, analyzed, leveraged and managed across the US network
• Profit centers were left to deal with common carriers on their own
• Local price agreements left pricing, fuel surcharge and terms & conditions favorable only to the carrier(s)

TPG Challenge

• Lacking freight payment data, we developed an RFP based on a sampling of freight bills across the network
• The distributor’s leadership at headquarters does not dictate the use of transport providers

Compelling Results

• The distributor’s national freight bill was cut 50% post rigorous contracting with 23 carriers
• The success generated for CED in the 1st phase (western states) enabled a sister company with 270 locations to be integrated & negotiated for the entire US as well