Sometimes a high operational cost is not simply a pricing problem. It is a sign that the service arrangement no longer fits the task.
During my previous employment with a global IT services organisation, I identified an opportunity to reduce UK laptop shipping costs by changing how individual device shipments were managed.
I led the transition to an alternative logistics arrangement, reducing the cost per laptop shipped from £80 to £8—a 90% reduction—while maintaining service continuity.
The challenge: individual shipments under a freight-focused agreement
The existing shipping agreement was structured primarily around palletised freight rather than individual laptop shipments.
That made it a poor fit for the operation’s single-device shipping requirements. The organisation was paying £80 for each laptop shipped, creating a clear opportunity to review the arrangement.
Following a warehouse relocation, I assessed how the organisation could make better use of its warehouse supplier’s logistics capability.
My role: finding and implementing an alternative
Although the activity originated as a procurement task, I took ownership of developing and delivering an alternative solution.
I worked with the warehouse supplier, an alternative carrier, procurement colleagues and operational teams to:
- Clarify the requirements for individual laptop shipments.
- Assess a revised shipping model and its operational benefits.
- Negotiate the commercial and service arrangements.
- Coordinate implementation and manage dependencies.
- Address risks to service continuity.
- Ensure operational teams and supplier personnel understood the revised process.
The aim was not simply to find a cheaper carrier. It was to establish an arrangement better suited to the way the equipment needed to move.
Making use of the supplier’s wider capabilities
The revised model placed laptop logistics with the warehouse supplier, using an alternative parcel carrier at an agreed cost of £8 per laptop shipped.
The supplier already processed equipment at volume for multiple corporate clients, providing an established operational capability for handling individual devices.
It was also an authorised repair provider for Lenovo. This enabled eligible faulty devices still under warranty to be repaired on site rather than shipped elsewhere for repair.
The arrangement therefore offered practical benefits beyond the shipping price: device handling, dispatch and eligible repairs could be coordinated through the same facility.
The outcome: lower costs and a more suitable process
The new shipping model reduced the cost per laptop shipped from £80 to £8:
- £72 less per laptop shipment.
- A 90% reduction in the per-shipment cost.
- A logistics arrangement better suited to individual device movements.
- On-site repair capability for eligible devices under warranty.
The transition was completed while maintaining continuity of employee IT equipment services.
The financial benefit was a saving on each shipment; the total saving depended on the number of laptops shipped.
What this means for smaller businesses
An established supplier agreement is not necessarily the best fit for every activity it covers.
When costs appear disproportionate, I look beyond the headline price: what is the service designed for, how is it being used, and could a different arrangement meet the requirement more effectively?
Through VitaAssist Consulting, I bring that practical approach to supplier coordination, operational improvement and cost reduction—helping businesses identify mismatches, assess alternatives and implement workable changes.