# Executive Summary — Logistics Cost Review

**Prepared for** the Executive Committee · **July 2026** ·
**Full report:** 64 pp., available on request

## Situation

Freight spend grew 31% year over year against 12% volume
growth. This review examined all 2026 lanes, carrier
contracts and accessorial charges.

## Findings

1. **Carrier concentration is costing us.** Two carriers hold
   71% of volume; their rates rose 2.4× the market index.
2. **Accessorial charges are unmanaged.** Detention and refuel
   fees total $2.8M — 62% avoidable per lane-level audit.
3. **Contract timing works against us.** All major renewals
   land in Q4, our weakest negotiating quarter.

## The numbers

| Lever                  | Annual saving | Effort | Timing  |
| ---------------------- | ------------- | ------ | ------- |
| Rebid top 10 lanes     | $3.1M         | High   | Q3–Q4   |
| Accessorial controls   | $1.7M         | Low    | 30 days |
| Stagger renewals       | $0.9M         | Medium | 2027    |

## Recommendation

**Approve the accessorial control program immediately** (30-day
payback) and authorize the Q3 lane rebid. Combined impact:
**$4.8M annualized**, roughly 9% of freight spend.