Award-Winning CPG Brand Partners with LJM, Saves Over $22M on Shipping Costs
The Challenge
Explosive e-commerce growth had turned this brand’s shipping operation into a major cost center. Rising parcel volumes, frequent carrier surcharges, and fragmented contract terms made it difficult to forecast costs and maintain consistent delivery performance.
At the same time, customer expectations for visibility and cost transparency were accelerating. Inconsistent regional rates led to higher cart-abandonment and lost revenue. The company needed a strategic partner who could bring clarity, control, and leverage to a complex multi-carrier environment.
LJM's Solution for CPG eComm Shipping
LJM’s Executive Shipping Advisory conducted a comprehensive analysis of the company’s parcel data and carrier contracts. Spanning multiple negotiation cycles from 2021 to 2024, the engagement combined deep pricing expertise with operational strategy.
Working closely with the client’s logistics and finance teams, LJM:
- Modeled rate and surcharge impacts across multiple carriers and service levels.
- Streamlined a fragmented carrier network to improve leverage and reliability.
- Renegotiated contract terms to address hidden cost drivers such as dimensional weight, additional handling, and residential surcharges.
- Advised on process and system improvements to align shipping operations with customer-experience goals.
The result was not only better pricing, but a smarter, data-driven shipping strategy built to scale.
The Results
- $22.7 million in savings realized from 2021–2024.
- 18% reduction in cart-abandonment, directly increasing online conversions (sales.)
- Simplified rate-display programming, cutting IT costs and improving checkout speed.
- Strengthened carrier relationships through data-driven rate benchmarking and pricing model redesign.
- Improved margin control through multi-carrier optimization and contract standardization.
- Reduced invoice discrepancies and eliminated redundant fees via data-driven auditing.
This engagement underscored how an integrated shipping strategy can do more than cut costs: it can drive revenue growth and enhance customer satisfaction. The brand saw an 18% lift in online sales while improving margin control and operational efficiency.
This partnership continues to guide the company’s shipping strategy as it scales into new markets, proving that parcel carrier contract optimization is not a one-time event, but a competitive advantage that compounds over time.
Access This Content
Change the Economics of Your Shipping
Better Rates.
Complete Visibility.
Strategic Edge.
