Big Network. Bigger Expectations. Margins Under Pressure.
A nationally recognized manufacturer in the automotive lubricants category faced a common challenge: rising shipping costs across a complex distribution network. With 10 distribution centers spread across the U.S. that had developed and expanded organically, leadership knew some facilities were no longer in the right locations. The harder question was which ones should be closed, consolidated, or relocated, and where new investments would deliver the best balance of cost and coverage.
At the same time, leadership was committed to fast delivery promises and trying not to rely solely on expensive air services.
This large and growing family-run business, with deeply rooted customer-centric values, needed a smarter, data-driven way to balance customer experience, network efficiency, and costs.
From First Win to Long-Term Partnership
When the company first engaged Lojistic in 2007, they were primarily seeking help with parcel contract negotiations. The first negotiation was a resounding success, delivering savings beyond expectations and building immediate trust. That success opened the door to an expanded long-haul relationship. One that included:
Freight optimization and RFP support.
Data-driven modeling of distribution center closures and realignments.
Ongoing contract negotiations and special projects.
Proactive spend monitoring and analysis.
Over time, the relationship evolved from a vendor engagement into a true strategic partnership.
Analytics, Modeling, Negotiation, and Proactive Support
The Lojistic platform, backed by Lojistic’s team of experts, empowered the brand with:
Parcel Contract Optimization – Multiple successful renegotiations, including four full cycles and many special project, consistently driving millions in savings.
Freight RFP Support – Aggregated all required data and resources, crafted the RFP, and helped run the sourcing process, ensuring cost control even as the network footprint shifted.
Network & Policy Modeling – Modeled “what-if” scenarios to evaluate critical DC decisions, improve two-day ground coverage, and reduce reliance on air services, ultimately driving significant savings and faster service.
Proactive Monitoring – Shipping Performance Reviews that continuously flagged critical KPIs, ensuring emerging issues were caught immediately before becoming problems.
Knowledge Transfer – The client’s team had a frontrow seat to Lojistic’s highimpact, datadriven negotiation process, giving their team a durable playbook for future internally driven RFPs and carrier conversations.
Results
Deep 8-Figure Savings
Across parcel and freight over years of partnership.
Smarter Footprint
Data-supported decisions were made to close, move, or consolidate select DCs to achieve 100% optimized cost efficiency and speed.
Speed Without Disruption
Analysis and implementation that enabled two-day customer promises without relying on costly air services.
Long-Term Partnership
A strong relationship, nearly two decades and running, built on trust, transparency, and proactive guidance—not “set it and forget it.”
Client Perspective
“We thought our approach was strong. Lojistic showed us what ‘best in class’ really looks like, delivered meaningful savings, and taught our team how highleverage negotiations are run. They’re not just a vendor, they’re an extension of our team.”
Takeaway
Even well-established manufacturers with experienced teams can miss hidden savings or fail to anticipate carrier costs and market shifts. By using Lojistic, this automotive leader not only secured better rates but also a proactive partner, one that aligns with their family-driven values, anticipates challenges, and empowers smarter decisions and savings year after year.
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