Direct-Recovery identifies hard and soft cost transport savings for companies that ship with any major parcel shipper. ‘Hard’ savings are refunds due to late deliveries and billing errors, which are credited to the company’s carrier account. Our primary revenue stream is a split of these savings.
‘Soft cost’ savings are derived from operational changes the customer makes based on the information we provide through our SaaS report interface. We have one of the best sources of logistics intelligence in the industry with 300+ configurable reports developed over the years at the request of customers. When that’s not enough, we have an ad-hoc report writer or custom programming to supplement.
We identify the soft cost savings, but it’s up to the customer to deploy the solution. Sometimes they don’t, and it’s a perennial frustration to see the money wasted. We find that the greatest savings opportunities are often based on operational changes we identify, the implementation of which is simply outside the scope of our involvement. Air to Ground conversions is often a big opportunity – up to 30% savings for one specific company.
Another challenge is that the reporting tool we’ve created takes some expertise to fully exploit. A business whose core competency is distributing medical supplies may not effectively leverage the gems of business intelligence that the tool can supply. On the other hand, consultants whose sole focus is cost control and profit optimization would benefit greatly from the information this system provides.
Direct-Recovery is looking for parcel audit implementations with a revenue stream from a share of hard cost savings we secure. Cost-control consultants would benefit from the business intelligence tools that we provide free of charge, and implementing and profiting from the operational improvements they identify. There’s always the commission earned from the Affiliate referral as well. It’s a perfect match.
If you’re an independent consultant bent on profit optimization, looking for an invaluable but free tool to help you do your job by analyzing transport spend, ask for a demo. We’re a necessary addition to any bundle of cost control solutions.