Parcel Shipping Spend Management and Private Equity

A source of Enterprise Value

For even the most cost-conscious and disciplined private equity firms, one line item in portfolio companies’ operational budgets historically remained impervious or ignored in efforts to control costs, bring spend under management and capitalize on economies of scale: parcel shipping. But with advanced data science now readily accessible via Software-as-a-Service, businesses can easily and quickly lower their shipping costs - often radically.

New technology, including analytics, machine learning and artificial intelligence provides actionable insights that reveal the missed opportunities for savings hidden among the many thousands of parcel shipments made daily in busy warehouses and provides organizations that do business with the largest parcel carriers with an opportunity to secure significant bottom line and top line gains.

This newfound ability not only presents private equity firms with an opportunity to dramatically lower the operational costs of their portfolio companies, but also to quickly vet during due diligence whether potential targets for investment or acquisition can be quickly made more profitable.

One private equity firm recently used the Reveel Shipping IntelligenceTM Platform to quickly save more than $3 million dollars across seven mid-sized companies and to generate more than $24 million in enterprise value, but their experience is hardly unique. On average, portfolio companies can reduce their parcel spend by 22%, going directly to the bottom line.

Download the whitepaper to see how you can reduce parcel shipping costs and improve your margins!