Global enterprise saves $188,000 annually while preserving key relationships.
Challenge
When Pace Shave and Dorco co-invested in a joint venture, the result was a winning combination of Dorco’s razorblades and Pace’s distribution to drugstores across the US. Pace Shave began growing at an exponential rate and President, Ken Hill, knew there had to be ways to cut costs without reducing his already lean workforce. Additionally, their razorblade subscription service was doubling monthly and Pace Shave wanted to free up additional capital to invest in this model. They simply didn’t have enough hands on deck to locate and implement cost saving measures. Having already engaged CUSTOMatrix for CFO support, Pace Shave asked us to assist them with cost reduction solutions.
Solution
Our team of cost reduction experts immediately rolled up their sleeves to work with Pace Shave’s accounting department. Identifying that they were spending over $1 million a year on truck freight for delivery, we introduced other freight carriers with better pricing, which satisfied Pace’s finance team. But we also listened to their operations team, who told us they trusted and wanted to continue to use their original freight supplier. Working across departments, our team leveraged the competitive tension created through other bids to negotiate a better deal with their initial freight supplier. And as part of managing the implementation, we helped Pace with the new pricing negotiation so that they could begin ordering with reduced costs immediately.
Results
In addition to saving Pace Shave over $188,000 annually, we also provided their operations and accounting team with support throughout the process. We met with Pace Shave’s traffic manager, who completes the ordering, to provide one-on-one support as the pricing changes were implemented. Our team also completes a monthly audit to ensure the process runs smoothly. As a result, Pace was able to maintain important supplier relationships while saving over 15% annually in freight costs.
About Pace Shave
Headquartered in San Diego, Pace Shave is a leading distributor of disposable shavers, shaving systems and shaving accessories. Pace Shave aligned with South Korean company, Dorco, Asia’s market leader for disposable shaving products. This strategic partnership allowed Pace Shave to introduce shaving innovation to the U.S. consumer and private label marketplace.
Testimonial
The CUSTOMatrix team was instrumental in helping us match our existing carriers’ regional strength to our unique shipping lanes. We were thrilled to achieve these results while maintaining our key relationships.
Ken Hill, President
Pace Shave
