Saving $532,915 With Contract Engineering

0$ in shipping discrepancies identified
0$ Total contract savings
0 Negotiable contract components
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About Datto

Datto is the world’s leading provider of IT solutions delivered by Managed Service Provider’s (MSPs). Their services include business continuity, disaster recovery, networking, business management, file backup and sync solutions. In less than two decades they’ve created a oneof-a-kind ecosystem of partners that provide solutions to half a million businesses across more than 130 countries.

Founded in 2007, Datto believes that there’s no limit to what businesses small and large can achieve with the right technology. Datto’s rapid growth, product excellence, superior technical support, and outstanding work culture has earned them hundreds of awards over the past 17 years. That success has set the stage for a fruitful future in serving the expansive and everevolving tech market.

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Working With The World’s Leading Provider of MSP-Delivered IT Solutions

Prior to partnering with Sifted, Datto’s Director of Logistics Matt Provost and Senior Manager of Hardware Operations Tom Pelillo experienced the painful process of manually generating reports from online reporting and carriers’ billing center. Now, in a moment’s notice they can easily generate specific reports like Shipping Charges Detail, Surcharges Spend, and Address Corrections.

In addition to the streamlined reporting capabilities, Matt and Tom can easily view and monitor their overall spend and the earned discount tier in which they reside with the 52-week tier trend chart on the LI dashboard. The ability to access realtime package analytics makes a positive impact on Matt and Tom’s day-to- day functionality, and the company as a whole. Sifted’s data guides strategic conversations; it helps confirm or deny hypotheses and provides data-driven expertise to guide their business to continuously improve operational efficiency.

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Sifted was a huge asset; they were able to walk us through the contract negotiation process step by step. Their knowledge and experience helped set the stage for us and guided our internal conversations and timelines.

Tom Pelillo | Senior Manager, Datto

The Key Elements to Datto's Success 

A New Perspective

With the demand for two-day delivery at an all-time high, Datto wanted to ensure their customers’ experiences were met, and to explore strict two-day delivery options. While analyzing their operations the team at Datto decided to evaluate their distribution center and knew Sifted’s wealth of data would be key to identifying viable options. Sifted provided a Network Configuration Optimization service to analyze the best options that provided the most savings and the fastest transit times.

The Data Science team at Sifted compared Datto’s Average Cost Per Package to the Average Transit Time providing four possible configuration scenarios that included Percent Cost Savings and the Average Transit Time.

Dusting Off the Negotiation Playbook

Datto’s partnership with Sifted started with the Parcel Audit and the Logistics Intelligence Platform. Now powered with Sifted’s Parcel Intelligence tools, they decided to go down an exploratory path to discover if their carrier was really saving them money. After some preliminary research, the logistics team at Datto realized they needed the right expertise and resources to simplify the negotiation process- analyzing a contract to understand true savings is an extensive process. That’s when they turned to Sifted for guidance on negotiating a new contract. 

Campaign Overview

Successfully negotiating better rates is complicated because carrier benchmarking information is not readily available to shippers. Fortunately, Sifted has 13 years of benchmarked data from more than 5,400 customers with more than $7 billion in parcel spend. Sifted showed Datto precisely how their rates compared to those with the best discounts and terms.

With nearly 600 negotiable components, analyzing a carrier contract without the right partnership is a daunting feat. Data scientists and parcel consulting experts analyzed their carrier agreement with objective real-time benchmarking through the Logistics Intelligence Platform. The contract negotiation process for Datto’s logistics team was simplified with a data-driven approach. 

Contract Engineering empowered the logistics team with benchmarking information providing the confidence knowing they were coming to the table with comprehensive data to improve their carrier agreement. Matt and Tom’s experience with Contract Engineering was positive and they would recommend it for shippers that want to successfully negotiate their carrier contracts. After the new carrier agreement was executed, Datto’s relationship with their carrier is better than ever. They meet with the carrier bi-weekly to address issues across departments and hold them accountable to the service level commitment they made when they transitioned their volume to them.

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Sifted is proud to partner with Datto and future Contract Engineering customers to provide ongoing value through benchmarking and monitoring of potential savings in real-time as carriers update their complex pricing annually.

With the help of Sifted, Datto was able to identify $70,000 in shipping discrepancies, and ultimately save $532, 915 throughout the course of their contract.

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