Client: Smashbox Cosmetics was created by brothers Dean and Davis Factor, great-grandsons of makeup legend Max Factor. The company grew out of Smashbox Photo Studios, where celebrities arriving for photo shoots asked the brothers to create makeup for them. Today, Smashbox Cosmetics manufactures a full line of beauty products sold in 40 countries.
Challenge: Smashbox delivers orders to customers using Small Package Freight and ships products to distributors using less than-truckload, or LTL Freight.
Objective: Expense Reduction Analysts (ERA), who know about the beauty of savings, were invited to review Smashbox’s shipping expenses totaling $1.2M annually.
CFO, Patricia Boucher was “initially hesitant with the time commitment on our end.” Ultimately, her staff spent about 20 hours on the project—saving $18,750 for every hour invested. “The ERA team took the time to meet with various stakeholder groups (operations, shipping, IT, billing) to ensure that our business process was understood and any specific service or quality requirements were discussed and incorporated in the RFP process.” Boucher also said, “Once they identified the savings and we approved their recommendation, they made sure our user groups were part of the implementation process…. The ERA team continued to be involved in the execution process, meeting with our team and the supplier team as required, until the transition was complete.”
LTL freight savings of 34% or $135,000 annually
Small Package Freight savings of 33% or $240,000 annually
Results achieved with 1 new supplier and 1 incumbent supplier
Expense: LTL Freight, Small Package Freight
Industry: Manufacturing, Cosmetics Manufacturing
Hidden Savings: $375,000