Member Saves $1.6 Million on Freight Spend

TABLE OF CONTENTS

Member Profile

The member is a leader in liquid portion control, bulk condiments, seasonings and dry blend mixes, and custom printing for the foodservice industry. Their portfolio of 17 brands serves industry segments including convenience stores, education, healthcare, military, office coffee services, and restaurants.

Freight Spend Challenges

The member, already part of PA’s MRO and Packaging GPO programs, worked with their member advisor to identify additional savings opportunity across other indirect categories. For their Freight spend, PA worked with the member to highlight a lack of competitiveness between their current rate structure and market average via DAT. The chart below shows January 2022 through May 2022.

The member’s incumbent provider acknowledged the variance and took a concession to become competitive with the market, highlighted in the circled June/July timeframe above.

However, three months later, the market had moved again and the member was once again non-competitive.

How PA Helped

As a result, the member joined PA’s Freight Program and now has confidence that their rates will be consistent with the market.

PA uses actual DAT shipment data to ensure consistency with pricing and works with partners to adjust rate structures based on pre-established agreements. This ensures two things:

That members receive concessions when the market is declining;
That any increases members do incur are consistent with actual market pricing and prevents “opportunistic” rate increases by supplies.