Midwest health system saves $1.1M in freight costs with VPL

2 min. read

Inbound freight management | Outbound shipping & tracking | Real-time visibility | Analytics & data visualization

Case study

When shipping into, within, and beyond your health system, transparency and choice are key. VPL’s choice of carrier, total
pricing transparency, and real-time supply chain visibility drive efficiency and cost savings.

How it started

Before partnering with VPL, our Midwest health system customer was limited to just one carrier for all its shipping volume. This meant they were not always getting the most cost-effective shipping options, and they also experienced frequent delays with no alternative carriers.

“If something happened, we saw delays with our express shipments,” the customer said. “If our incumbent gave us the ability to ship with other carriers, we could’ve moved things to different hubs. But they didn’t work with anyone else, so we were stuck.”

Not to mention, our customer had significantly less transparency in the billing process with their previous freight management vendor. “We knew that our previous vendor was paid per shipment, but we didn’t know exactly how much,” they said. “VPL’s flat-rate model incentivizes them to really look at the best option available to us.”

How it’s going

After just one year with VPL, our customer has achieved $1.1 million in savings versus prepaid and add across a total managed volume of 120,909 shipments. Additionally, VPL brought 179 net new suppliers onto the program. 

“VPL has been very helpful in finding vendors we can contact to steer more shipping volume onto their program,” they said. “We can easily go into the platform and find vendors that are shipping 20% through VPL, and initiate talks to bump that up to 60 or 80%.”

VPL has also helped save the health system over $23.7K by auditing price discrepancies for overage charges and processing rebills to avoid costs. “We never saw these corrections or savings with our previous freight program,” they said. “It’s great to actually see these savings through VPL.”

    Highlights:
  • $1.1M saved across the freight program
  • 120K+ shipments managed 
  • 179 net new suppliers
  • $23.7K saved through overage audits and rebills

Don’t leave supply chain
savings on the table.

Schedule a demo with us today!