Home > Case Studies > Houston DSP Owner
Houston DSP Owner
A Delivery Service Partner (DSP) owner based in Houston, Texas was facing challenges in maintaining consistent Fantastic Plus scorecards, which are crucial for performance bonuses and operational success. This owner was also in a pressing situation, needing to allocate funds for extensive vehicle repairs as several vehicles were approaching retirement. To achieve these goals without jeopardizing other essential parts of the business, the DSP owner sought options to reduce operational costs, ensuring financial flexibility to meet repair needs.
This case study shows how we helped a DSP owner in Houston save $38,000 in 45 days by cutting costs in phone bills, insurance, and payroll. Facing high expenses and the need for vehicle repairs, the owner turned to us. Our expense assessment and strategic improvements unlocked savings and bonus pay, providing immediate financial relief and long-term efficiency.
Client's Problem:
The DSP owner in Houston, Texas found himself in a difficult financial position, with rising operational costs and the looming need to repair vehicles nearing retirement. With limited funds available, the owner needed to make strategic financial decisions that would not only ensure the smooth running of the business but also free up money for vehicle repairs. The primary goal was to identify areas where savings could be made without compromising the overall efficiency and performance of the business, particularly in maintaining Fantastic Plus scorecards, which contribute to the company’s success and potential bonus earnings.
Your Solution:
Fortunately for this DSP owner, there was an option he hadn’t yet explored—partnering with our team to thoroughly assess his business expenses and uncover hidden opportunities to save money. Upon conducting a comprehensive evaluation, we discovered several areas where the company was overspending.
The first breakthrough came when we tackled the company’s exorbitant phone bill, which was running at $6,000 per month. Leveraging our strong relationships with service providers, we negotiated a significant reduction in the monthly phone bill, bringing it down to just $1,200, a savings of $4,800 per month.
Additionally, during the initial four months of working with the DSP owner, we implemented a Safe Driving Program. As a result of improved driver performance and better safety scores, we were able to renegotiate the company’s insurance rates. By working directly with the insurance company, we reduced the monthly premium from $26,000 to $18,000, a substantial decrease of $8,000.
Next, our team performed an in-depth analysis of the DSP owner’s payroll. Through strategic scheduling adjustments and driver coaching aimed at boosting efficiency, we eliminated unnecessary overtime costs. This optimization resulted in a further $4,000 in monthly savings.
To demonstrate our dedication to delivering results, we even temporarily discounted our own service fees, ensuring the owner could achieve these savings without financial strain. Altogether, the combined savings generated from phone bills, insurance premiums, payroll, and discounted services amounted to $20,000 over 45 days. On top of this, the DSP’s streak of Fantastic Plus scorecards brought in an additional $12,000 in bonus payments, creating a total savings of $32,000.
Results Achieved:
Thanks to our team’s careful analysis and strategic interventions, the DSP owner was able to accumulate a surplus of $38,000. This surplus was crucial, as it provided the funds necessary to conduct essential vehicle repairs in time for their retirement, ensuring continued fleet reliability. The results not only gave the DSP financial relief but also demonstrated that, with the right approach, operational inefficiencies could be addressed, and profits could be reinvested into critical areas of the business.
Lessons Learned
From this case study, we learned that DSP owners, often preoccupied with the day-to-day demands of running a dynamic operation, can easily overlook opportunities to increase operational efficiency and profitability. In this case, the owner was focused on addressing the most pressing issue—allocating funds for vehicle repairs—but hadn’t considered how operational expenses could be reduced to create the necessary financial flexibility.
Our team’s ability to take a step back and apply a fresh perspective allowed us to identify hidden savings that would have otherwise gone unnoticed. By directing resources toward analyzing the DSP’s expenses, we were able to implement cost-saving measures without disrupting day-to-day operations, ultimately improving both the owner’s financial health and business performance. This experience reaffirmed our belief that outside consultation can be vital to solving operational problems that internal teams may be too immersed in the business to notice.
Conclusion:
Case Study 0002 highlights the importance of our team’s commitment to achieving the results our clients need, even when it requires short-term sacrifices on our end. By temporarily lowering our fees and focusing on creating immediate savings, we were able to deliver the necessary financial relief to the DSP owner, allowing the business to thrive. The surplus generated not only covered the essential vehicle repairs but also strengthened the business’s operational foundation. This case reinforced the value of our cost-reduction strategies and our dedication to partnering with clients to solve complex business challenges.
DSP Consultant with proven systems, focus on safety & quality, and high-performance driver coaching.
COMPANY
CUSTOMER CARE
LEGAL
Copyright 2024. OMS Consulting LLC. All Rights Reserved.