Case study: Reducing parcel and LTL transportation costs
AFS SERVICES:
HIGHLIGHTS
75% REDUCTION
In LTL Carriers Per
Distribution Center
$238,000
Returned Through LTL Freight Claims In The First 15 Months
$1,176,000
In Total Parcel Savings Generated In One Year
ABOUT THE CUSTOMER
Rexel USA specializes in commercial and residential wholesale electrical, industrial, lighting, tools, controls and automation products. Rexel Group is one of the world’s largest electrical distributors, and their U.S. presence serves millions of customers from more than 500 branches and distribution centers across the country.
“From providing guidance on RFPs to just offering a sounding board and providing expert feedback on our internal processes around transportation, AFS is truly on our side and looks out for our best interest.”
Travis Gordon, Rexel USA’s National Transportation and Logistics Manager
CHALLENGES
Rexel, with nearly half its U.S. workforce focused on logistics struggled to control shipping costs, manage claims, and ensure consistent service. Missed or delayed deliveries not only disrupted customers – sometimes halting operations for days – but also became sunk costs due to the lack of a claims process. A large carrier roster, limited reporting, and unclear charges made it difficult to track performance and mitigate the impact of annual GRIs.
SOLUTIONS
AFS partnered with a shipment visibility provider to deliver a custom solutions for Rexel, giving them access to high-fidelity transportation data and predictive insights. This improved decision-making, enhanced visibility, and addressed Lon-standing reporting and cost management challenges. AFS delivered strategic solutions for Rexel to improve cost control, enhance carrier performance, and increase shipment visibility across its logistics network. By identifying and correcting accessorial charge errors—such as detention, reconsignment, and layover fees—AFS helped Rexel recover costs that had previously gone unnoticed. To streamline operations, AFS led an LTL carrier consolidation initiative, reducing the number of carriers per distribution center and aligning Rexel with trusted, performance-driven partners. AFS also implemented a parcel claims audit process, giving Rexel real-time visibility into delivery issues and the tools to resolve lost or delayed shipments more efficiently. To keep costs predictable, AFS performed ongoing parcel rate and service audits, ensuring contract compliance and accurate invoicing. Close collaboration on General Rate Increases (GRIs) helped Rexel protect customers from unexpected shipping cost spikes.
RESULTS
By putting the right processes and technology in place, AFS helped Rexel reduce LTL carriers from eight to two per distribution center, implement a streamlined freight claims process that recovered over $238,000 in 15 months, and generate $1.17 million in annualized parcel savings. The numbers only tell part of the story. The AFS team has become a trusted ally through clear communication and dedicated support. “The biggest impact we didn’t anticipate was the relationship our team would have with our account manager,” said Gordon.“We work directly with the AFS team when necessary and response time is always quick. This is truly the support we needed.” In the 26th year of working together, AFS continues to help Rexel’s transportation team with corporate initiatives such as sustainability tracking and dedicated fleet analysis. The AFS Advanced Analytics team works closely with Gordon and others to build custom data feeds, KPIs/dashboards and provide expert analysis to uncover hidden insights not seen until today.
