ProfitFreight says its member savings topped $2 million last year

Clint Engel -- Furniture Today, March 15, 2013

COLORADO SPRINGS, Colo. — ProfitFreight, a division of retail technology company ProfitSystems that combines the buying power of its members to secure reduced freight rates, said its members saw savings of more than $2 million last year.

ProfitSystems launched the freight division in 2004 and said that it now has nearly 650 members - mainly retailers - who have saved more than $9.25 million in reduced freight rates over the past nine years.

Shelley Parlin, chief operations officer of ProfitSystems, said the service is provided primarily to its clients but other furniture companies can use it for a fee.

"Our program is designed to help the smaller to mid-size companies get all of the benefits that larger and Top 100 companies receive," including discounts and reduced fees, ProfitFreight Manager Ginny Hampton said in a release. "Many of our retailers find that this savings is significant enough to be the difference between a profitable and unprofitable year during this tougher economy."

The program uses the combined shipments of participating retailers to get the lowest shipping rates possible with their preferred carriers, the company said.

ProfitFreight was designed to serve retailers but in 2011, the division began offering the service to furniture manufacturers that weren't able to secure the same low rates.

Adding the shipping volume of these manufacturers with that of the retail members "gave even greater negotiating power allowing for even larger discounts for everyone," the company said in a release.

Four manufacturers are now participating and the company said it expects the number to grow.