Korber Vera Bradley Case Study

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Vera Bradley is a shipper of consumer soft goods, primarily bags, fragrances, luggage and accessories. Vera Bradley has earned a reputation as a leader in the accessories and gift industry. Creating stylish quilted cotton luggage, handbags and accessories, the company combines smart product designs with distinctive and colorful fabrics and trims. Opportunity At the outset of Körber's involvement with Vera Bradley, the company single-sourced its parcel shipping with a national carrier. Shipping almost exclusively out of its Roanoke, IN distribution center, Vera Bradley was shipping nearly 2.8 million packages per year. Vera Bradley engaged Körber to perform an analysis to determine if the existing pricing agreements were in line with the market and if they aligned with the company's shipping patterns, package attributes and business requirements. At a glance Project goals • Conduct an analysis of the transportation department and outline strategic initiatives • Validate Vera Bradley's current carrier's pricing against market rates • Evaluate and compare current carrier mix against alternative model Solution • Contract Analysis & Negotiation (CAN) consulting project Features and benefits • The benchmark analysis suggested that Vera Bradley was significantly overpaying for parcel services and that savings opportunities existed • Strategic initiatives and KPIs helped streamline transportation activities, driving efficiencies • Carrier mix adjustments allowed for further cost savings Körber Supply Chain Benchmarking and cost driver analysis Vera Bradley: Parcel contract negotiation delivers 7 percent cost savings.

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