24% reduction in operating costs for Łódź logistics
We optimized 147 cost invoices and reduced the number of unnecessary subscriptions. After 4 months, the company's operating expenses dropped by one-quarter.
Logistyka Łódź-Trans struggled with rising administrative costs that were eating into margins from domestic transport. Civil Strategy implemented a new expense control system, which brought measurable savings in just 16 weeks.
The challenge
The company had 147 invoices per month, of which 38 concerned software subscriptions and services that the team was not actually using. The lack of a clear decision-making structure meant every charge was automatically renewed for 2 years.
External accounting reported fuel settlement errors, which generated additional audit costs. The company board spent an average of 7 hours a week explaining payment differences instead of dealing with order logistics.
Our approach
The Civil Strategy team first conducted an audit of all contracts entered into by the company in the last 36 months. We checked every item, eliminating duplicate services and negotiating terms with 4 key software vendors.
We implemented a simple cost control sheet available to management. We introduced a rule that any invoice over 500 PLN requires approval by a designated person, which curbed unauthorized purchases.
The solution
We built a systematic expense verification process that took the team 4 hours per month instead of entire days. Every expense had to be assigned to a specific transport order, which immediately revealed unprofitable routes.
We replaced expensive SaaS licenses with free equivalents with similar functionality, which allowed us to avoid annual fees of around 12,000 PLN. Trust is built on facts, so full financial transparency became standard in the company office.
Results
Thanks to introducing clear decision-making rules, Logistyka Łódź-Trans reduced monthly operating expenses by almost a quarter. Budget stabilization allowed for the purchase of new warehouse equipment in the third quarter of the year.
Timeline
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January 2024Cost audit and analysis of 147 invoices
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February 2024Cancellation of unused subscription services
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March 2024Implementation of a new expense approval system
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May 2024Quarterly summary and profit verification
"At first, I was skeptical whether an invoice audit would yield anything more than a pile of papers. However, after 4 months, I see real 24% savings in the budget, which we will allocate to fleet development."