12% Savings in Freight
Client
Large Greek Export Industry, a leader in its field worldwide.
IndustryManufacturing & EngineeringServicesExpense ReductionCategoryTransport
The Result
12%
Savings Rate
Total Annual Spend:
€4,000,000
Total Annual Savings:
€480,000
The most important achievement of the project, in addition to reducing cost, is that these savings were achieved by 15% of the suppliers used recently by the client all of whom are now very satisfied with the new method and form of cooperation.
The Challenge
1
The project regards freight in both imports and exports. The range of the company freight includes almost all categories (Road Imports and Exports Full Track and Groupage, Sea Imports and Exports, Air Imports and Exports
The challenges of this project beyond the high expenses were:
- The complexity of the project regarding the transport form & logistics load profiles
- High volume and high cost of project monitoring
- Very large number of existing suppliers
- Great changes in Greek balance between imports and exports
- Meeting the strict requirements on the quality of transport and other services by the suppliers
- Most important demand is the high availability in very fast response
The Method
2
Despite all the difficulties and challenges of the project, the methodology followed and the emphasis that was placed on full analysis of transport as well as the strategy that the suppliers of this project should have, led to impressive results.
The analysis was based on the correct categorization of transport and the equally right export of the benchmark in each category. The strategy was based on the concept “Optimal availability of transport project and services in the lowest price”.