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.
Elements other than transport rates, pricing mechanisms and surcharges are just as important when procuring transport. Transportation procurement also needs to incorporate aspects like:
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?
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.
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:
Typical benefits of this approach are: lower transport costs and a more balanced transport network.