Transport Optimization and Carrier Selection

A high-quality transport network is more than just the lowest rate on each individual lane. As transportation costs represent a significant share of the overall supply chain spend in many companies, frequently reviewing the transport network, related carrier base and tariff structures are key. The benefits of such an initiative are a reduced freight bill and a more balanced transport network.

Transport tenders goes beyond rates

Elements other than transport rates, pricing mechanisms and surcharges are just as important when procuring transport. Transportation procurement also needs to incorporate aspects like:

  • The optimal number of carriers due to the related management effort
  • The optimal routing through the network, related to for example drop ship, break-bulk and consolidation
  • Coverage and reliability of service across markets and geographies
  • Specific industry capabilities, i.e. handling requirements, return
  • The required flexibility and capacity on each lane
  • Internal management/control effort such as freight auditing & payment, and transport order management
  • Visibility offered like event management, and track and trace

Reviewing the transport flow and related routing

Next to transportation procurement, reviewing the routing of flows throughout the network is key. This includes asking yourself questions such as are there drop ship opportunities, can we consolidate or deconsolidate flows and are the required service levels met?

Carrier optimization in the e-commerce landscape

As part of a transport procurement initiative, carriers can be allocated to specific lanes. Using today’s technologies readily available on the market, dynamic carrier allocation can add value by dynamically allocating selected carriers based upon actual order and shipment data. Such value can include lower costs due to the best cherry pick of each order to the preselected carriers or to offer more delivery options to consumers i.e. in the e-commerce landscape.

Transport optimization and carrier selection & BCI advice

Buck Consultants International has a strong track record in supporting clients in reducing transport costs by optimizing the transport network and picking the right carrier.

BCI supports clients by:

  • Benchmarking transport (how good are your rates?)
  • Freight optimization - assessing potential improvements to the transport network such as consolidation/deconsolidation of flows, multi drop analyses, alternative pricing, service levels and modalities
  • Leveraging state of the art tender tools which facilitate clear, transparent and accelerated communication with carriers

Typical benefits of this approach are: lower transport costs and a more balanced transport network.

Learn more about Transport Optimization and Carrier Selection?

  • Abbott – Cross divisional transport procurement
  • Archroma – European transport network development and freight procurement
  • Avery Dennison – EMEA transport procurement
  • D – European transport benchmarking and procurement
  • Grainger – European transport procurement
  • Ingersoll Rand – EMEA transport procurement
  • Newell Brands – European and Brazilian transport network assessment, flow optimization and freight procurement
  • Novo Nordisk – European transport procurement
  • P&G –  European transport procurement for P&G’s professional haircare business
  • SPX – EMEA transport procurement