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Insource Saves Clients Over $1 Billion on Parcel Shipping
Date:8/18/2011

HILLIARD, Ohio, Aug. 18, 2011 /PRNewswire/ -- Insource Spend Management Group, a leading provider of third party rate negotiation services, announced it has hit a milestone of exceeding $1 billion in parcel savings for its clients.  Many Fortune 500 clients have individually saved tens of millions by using Insource's key combination of software, analytics and expert negotiation. Shippers across a wide range of industries have benefitted from Insource's services, including retail, wholesale, pharmaceutical, manufacturing and private equity firms.    

With the downturn in the economy, many companies looked deeper within their organizations for ways to save money and recognized an opportunity to save substantial amounts on parcel shipping rates. This led to four consecutive years of record client engagements for Insource, allowing the company to achieve this milestone much sooner than expected.  "We have always targeted the billion dollar savings mark, and as recently as 2008 it looked like we would hit it in 2014," said Insource's President, Brett Febus.  

The math behind the accelerated demand for Insource's parcel contract negotiation services makes sense.  Each year, more than $100 billion is spent on parcel shipments. A recent study by global financial advisor, Morgan Stanley(1) found that companies who use a third-party negotiator like Insource get a 49% better discount than when they negotiate on their own.  The same survey showed that the number one management challenge facing parcel operations was managing costs.  

"The biggest hurdle in contract negotiation with parcel carriers is lack of transparency – unless you've negotiated hundreds of these types of contracts it's impossible to know whether you're getting the best pricing and agreement terms," said Febus. "Parcel carrier contracts are incredibly complex – and that's the expertise that we bring to the table. We've literally analyz
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SOURCE Insource Spend Management Group
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