Unlocking $580K in Cost Savings

The Challenge

A mid-sized consumer goods company was facing unexpectedly high shipping and packaging costs. During a routine invoice audit, Izba uncovered major variances between actual and billed weights — a red flag that triggered a deeper review.

We found that oversized cartons were being used for smaller SKUs, packaging didn’t match order profiles, and one international carrier was inflating dimensional charges due to a unit conversion error (inches vs. centimeters).

Our Approach

We rebuilt the client’s packaging strategy from the ground up:

• SKU-based redesign: Matched box sizes to SKU dimensions and order volumes, introducing right-sized cartons for top sellers.
• Warehouse process optimization: Created packaging guidelines and training to ensure correct box selection and reduce waste.
• Carrier dispute and recovery: Escalated billing discrepancies, backed by dimensional data, and negotiated refunds for past overcharges.

The Outcome

The optimized packaging program delivered $380K in annual recurring savings plus $200K recovered from carrier disputes. Warehouse teams reduced packing errors, carrier negotiations became data-driven, and packaging strategy shifted from reactive to a measurable source of profit.