Client Profile
IQ Apparel, headquartered in Georgia, is a full-service provider of branded uniforms, corporate apparel, and promotional merchandise. Known for delivering end-to-end solutions – including design, sourcing, production, logistics, and sustainability – IQ Apparel supports both national brands and global franchises that rely on premium apparel to elevate their brand identity.
The Challenge
IQ Apparel had long relied on a single national parcel carrier for all domestic and international shipments, including Ground, Express, and International Express services. When presented with a new carrier agreement, the proposal came with sweeping changes: updated discount tiers, altered contract language, and a firm stance from the carrier’s rep that the offer was “final.”
Although the proposed rates initially seemed favorable, IQ suspected there could be more beneath the surface and turned to our team to assess the true financial impact.
Our Approach
We conducted a deep dive analysis of both the new contract and IQ’s historical shipping data to uncover hidden risks and cost implications. Our review included:
- A line-by-line comparison of over 200 surcharges and accessorial fees.
- Lane-level analysis of thousands of origin-destination pairs.
- A contract language review, with a focus on restrictive terms such as early termination penalties.
Our findings revealed that while base rates and headline discounts were competitive, the fine print told a different story:
- Adjustments to surcharge structures and incentive tiers would have increased costs by nearly 10%.
- A newly introduced termination clause would penalize IQ for shifting volume – even in the case of poor service – limiting their agility and risk mitigation options.
The Solution
We armed IQ Apparel’s leadership with strategic insights and negotiation guidance, empowering them to challenge unfavorable terms with data-backed clarity. Each revision round was meticulously reviewed and validated to ensure transparency, alignment with market standards, and maximum savings.
Results
With our support, IQ Apparel achieved the following:
- 19.3% annual transportation cost reduction.
- Fully validated discount structures and surcharges, aligned with industry benchmarks.
- Removal of restrictive contract language—restoring operational flexibility and reducing risk.
Conclusion
This case demonstrates how even “final offers” from carriers often leave room for improvement. By combining deep contract expertise with shipment-level analytics, IQ Apparel turned what seemed like a routine renewal into a strategic win.
The takeaway:
A proactive, data-driven contract review isn’t just about savings – it’s about protecting flexibility, improving visibility, and ensuring your agreements are working for your business, not against it.
Learn More About How nVision Global’s Small Parcel Cost Optimization & Management Can Also Save You Money.