FedEx Single-Carrier Cost Optimization

Analyzes a single carrier's shipping invoices to identify dimensional weight penalties, service level mismatches, and zone-based cost inefficiencies with prioritized savings recommendations.

Input

What you provide to the skill

I have a FedEx shipping invoice CSV with dates, weights, and costs. Can you analyze it for optimization opportunities?

Output

What the skill generates for you

Shipping Cost Analysis - November 2025

Executive Summary

Total Shipments: 60
Total Spend: $1,414.40
Average Cost per Shipment: $23.57
Estimated Monthly Savings Potential: $239 (16.9%)
Annual Savings Potential: $2,873

Carrier Performance Comparison

Service	Shipments	Total Cost	Avg $/Shipment	Avg $/lb	Usage
Ground	52	$1,083.10	$20.83	$3.78	86.7%
2-Day	8	$331.30	$41.41	$11.38	13.3%

Finding: 2-Day service costs 199% more per shipment and 201% more per pound than Ground.

Cost by Destination Zone

Zone	Shipments	Avg $/lb	Avg Weight	Avg Cost	Efficiency
2	6	$2.54	5.4 lbs	$13.03	Best
3	5	$2.48	6.4 lbs	$15.21	Best
4	6	$2.90	6.4 lbs	$17.15	Good
5	7	$5.00	4.1 lbs	$19.19	Expensive
6	12	$4.32	5.6 lbs	$23.40	Expensive
7	7	$4.82	5.1 lbs	$24.16	Expensive
8	9	$4.71	5.9 lbs	$26.84	Expensive

Finding: Zones 5-8 cost 70-102% more per pound than Zones 2-4. This is expected due to distance, but presents negotiation opportunity given volume.

Dimensional Weight Analysis

Packages charged at dim weight: 34 (56.7%)
Average dim weight penalty: 3.2 lbs per package
High penalties (4+ lbs): 10 packages
Monthly impact: $355

Top dimensional weight penalties identified:

Date	Zone	Actual Weight	Billed Weight	Penalty	Cost Impact
11/17	6	7.8 lbs	13.2 lbs	5.4 lbs	$23.22
11/26	6	6.7 lbs	12.0 lbs	5.3 lbs	$22.90
11/22	6	6.1 lbs	11.0 lbs	4.9 lbs	$21.17
11/13	6	5.3 lbs	9.5 lbs	4.2 lbs	$18.14
11/28	7	5.6 lbs	9.4 lbs	4.8 lbs	$21.21

Anomalies Detected

1. High Dimensional Weight Penalties (10 instances)

Action: Review packaging for 10 shipments with 4+ lb dim weight penalties. Consider:

Smaller box sizes for items with excess space
Tighter product configuration to reduce cubic volume
Alternative packaging materials

2. Service Level Mismatches (3 instances)

Dates: 11/14, 11/20, 11/25 - 2-Day service to Zones 2-3
Finding: FedEx Ground delivers to Zones 2-3 in 1-2 business days
Action: Review business requirements for these shipments. If next-day arrival is not critical, use Ground service.

3. Statistical Cost Anomaly (1 instance)

Date: 11/17 - Zone 6 Ground shipment
Details: 7.8 lbs charged at 13.2 lbs (dim weight), total cost $26.45
Expected: ~$18-20 for this zone/weight combination
Action: Verify no residential delivery surcharge or extended area fee was applied

Optimization Recommendations

Priority 1: Dimensional Weight Reduction

Savings: $178/month | $2,133/year

Test smaller packaging for 20 shipments with 3+ lb dim weight penalties. Even a 50% reduction in penalties yields significant savings.

Immediate actions:

Audit packaging for November 17, 26, 22, 13, 28 shipments (highest penalties)
Test alternative box sizes for products causing 4+ lb penalties
Implement packaging guidelines for fulfillment team

Priority 2: Service Level Right-Sizing

Savings: $62/month | $741/year

3 shipments used 2-Day service to Zones 2-4 where Ground delivers in 1-2 days.

Immediate actions:

Review business rules requiring 2-Day service
Create zone-based service level selection guide
Train fulfillment team on transit time expectations

Priority 3: Negotiate Volume Discounts on Zones 5-8

Savings: $120-180/month | $1,440-2,160/year

Leverage: 33 monthly shipments to Zones 5-8 representing $858/month

Request: 8-10% discount on Zone 5-8 Ground base rates

Talking points:

Consistent volume: 20% of shipments are long-distance
Growth trajectory (if applicable)
Competitive pressure from regional carriers for shorter zones

Total Estimated Savings

Recommendation	Monthly	Annual	Difficulty	Timeline
Dim Weight Reduction	$178	$2,133	Medium	2-4 weeks
Service Right-Sizing	$62	$741	Low	1 week
Zone 5-8 Negotiation	$150	$1,800	Low-Med	4-6 weeks
TOTAL	$390	$4,674	-	-

Conservative estimate: $239/month (16.9% of current spend)
Aggressive estimate: $390/month (27.6% of current spend)

Implementation Timeline

This Week

Review 3 anomalous 2-Day shipments to determine if Ground is acceptable
Identify packaging alternatives for top 5 high dim-weight shipments
Document current service level selection criteria

This Month

Test new packaging on 20 shipments with historical dim weight penalties
Update fulfillment SOPs with zone-based service level guide
Compile FedEx negotiation package (volume data, competitive context)

Next Month

Measure dim weight reduction results and adjust packaging standards
Contact FedEx account manager with discount request for Zones 5-8
Set up monthly reporting to track cost per pound by zone