Verizon – 3PL Benchmark and Cost Driver Analysis
Tauber Team Uncovers Substantial Savings
A two-person team from the University of Michigan’s Tauber Institute for Global Operations, made up of Brittany Larkin Gutberg (MBA and MSE-IOE ‘15), Kevin Papak (EGL BSE/MSE-IOE ‘15), spent 14 weeks working with project supervisors Gerard Perret and Julian Sassoon, and project champion Viju Menon on the Vodafone acquisition and the One-Verizon strategy.
The Tauber team performed a comprehensive benchmark of current distribution center 3PL costs and contract structure across both the Wireless and Wireline business units and then evaluated the cost driving processes within the contracts to identify potential areas for future savings.
After visiting several distribution centers to view the processes first hand, the team found a total potential annual savings of $51M.
A portion of this savings was found by comparing pricing of same processes across 3PL providers in the same business unit.