How a food shipper saved $2M+ by rethinking LTL strategy

Challenge

This rapidly growing food shipper was in the middle of a major distribution network expansion—shifting from a single national distribution center to three strategically located hubs. Their LTL strategy, however, wasn’t keeping pace. A heavy concentration of outbound volume occurred at the end of each month, quarter, and year, making service reliability and flexibility critical. Their incumbent carrier often required shipments to be upgraded to higher (and more expensive) service levels just to meet tight foodservice and grocery warehouse delivery windows.

Outcome

ConData launched a comprehensive review of their dry LTL program, initiating a full RFP process to explore new carrier options and introduce standardized contracting practices.

Industry

Distribution

Region

North America

Client profile at a glance

  • Industry: National Food & Beverage Shipper

  • Annual Audited Freight Spend: $50 million

  • Shipping Profile: Primarily domestic, LTL-heavy volume with sharp end-ofmonth/ quarter/year surges

  • Payment System: Third-party freight payment provider

The Challenges

This rapidly growing food shipper was in the middle of a major distribution network expansion—shifting from a single national distribution center to three strategically located hubs. Their LTL strategy, however, wasn’t keeping pace. A heavy concentration of outbound volume occurred at the end of each month, quarter, and year, making service reliability and flexibility critical. Their incumbent carrier often required shipments to be upgraded to higher (and more expensive) service levels just to meet tight foodservice and grocery warehouse delivery windows.

This shipper needed a scalable LTL strategy that could:

  • Maintain reliable delivery windows without premium service up charges.

  • Handle volume surges efficiently at critical times.

  • Reduce transportation spend while expanding their geographic footprint.

The solutions

ConData launched a comprehensive review of their dry LTL program, initiating a full RFP process to explore new carrier options and introduce standardized contracting practices.

Working backward from the client's service-level needs and surge windows, we engineered a strategic multi-carrier solution that included:

  • Replacing the incumbent with one national carrier specializing in food transport.

  • Adding a super-regional provider with deep experience in the food industry.

  • Introducing two regional carriers to reduce transit times and costs for next-day deliveries.

This restructured approach not only diversified carrier capabilities but also gave the client the tools to respond nimbly to fluctuations in volume.

The results

  • $2M+ in annualized savings— well above the initial $1.5M projection

  • Reduced service-level upgrades—thanks to the new national carrier’s existing standing appointments with grocery and foodservice warehouses

  • Surge management streamlined—by collaborating with carriers on predictable peak windows and using regional hub pool points for truckload consolidation

  • Service improvement—ontime delivery performance to consignees increased by 2%, even while eliminating the need for expedited services

Overall business impact

This is a prime example of how deep freight insight, strategic carrier engagement, and phased execution can transform a looming cost burden into a financial and operational win. The impact was twofold: tangible savings of $2.5 million annually, and the foundation for a smarter, more resilient freight strategy moving forward. For this client, it wasn’t just about protecting savings. It was about redefining what their supply chain could achieve—no matter the market conditions. ConData proactively diagnosed the underlying cost drivers introduced by the merger, advised on network reengineering, and guided the client through a comprehensive carrier strategy reset. Throughout the process, we maintained regulatory compliance, preserved critical retailer relationships, and drove measurable bottom-line results. With routing restrictions, density degradation, and LTL volatility creating significant headwinds, ConData’s ability to dive below surface-level fixes—and collaborate directly with both clients and carriers—proved essential.