Freight

Large Greek export industry achieves reduction of freight cost 10% in annual expenses > 2.000.000 €


The strategy was based on the concept: "Optimal availability of transport and services in the lowest price".

This project involves transportation of the company's exports which constitutes 60% of the annual production of over 50.000 tones of product. The range of this company's transportation includes the following categories:

• Full Truck Road Exports
• Road Exports with more than one order / truck
• Sea Exports

The challenges of this project beyond the big expenditure were:

• High rate of transport cost over total costs (> 10%)
• High volume of loading and high cost of project monitoring
• Make to order production and no make to stock. Non programmed loading.
• Significant changes in Greek balance between imports and exports
• Most important demand the high availability in very fast response.

Despite all the difficulties and challenges of the project, the methodology followed and the emphasis placed on full analysis of transport and the strategy that the supplies of this project should have led to impressive results.

Analysis was based on the appropriate classification of transportation and the equally proper export of the benchmark in each category.

The rate of savings achieved differs per transport category but the average of the total project exceeds the 10% in annual expenditure more than 2 million €.

The most important achievement of the project, in addition to reducing cost, is that these savings were achieved by 50% of the suppliers used until recently by the client of VERALLIS all of whom are now very happy with the new method and form of cooperation.

Essentially what led to the success of this project is that a customized procurement model of transport was developed, which under certain conditions keeps all parties satisfied regarding their cooperation while holding fixed and low costs compared to the whole previous period.
This rate and the corresponding amounts are for the most part confirmed as the highest rate was achieved with the existing suppliers and without significant changes.
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