Transport strategy & transport procurement

Especially since transportation costs represent a significant share of the overall supply chain spend in many companies. Frequently reviewing your transport strategy and network, including optimization of the set-up and related carrier portfolio, is therefore key.

Transport optimization is more than just the lowest transport rates. In our view, your optimal transport network is about three main components. First of all, the “best-in-class” transport operations including for example:

• Coverage and reliability of the required services across your markets and geographies
• Use of correct transport modes and optimal routing through your network
• Optimization of your transport by using smart solutions, i.e. zone-skipping, administrative consolidation and lead time relaxation
• Optimal number of carriers including back-up carriers for business continuity
• Required flexibility and capacity on each lane
• Visibility and control mechanism

 Next to that, a solid transport procurement process to ensure the required services against the lowest overall transport related cost (transport cost is not just your transport rate). Finally, it your operations should be supported by a transport management organization with clear processes, organization set-up and related IT systems.

Reducing transport costs goes beyond the lowest transport rates. Our assessment covers all elements of your transport invoice, so including elements like fuel surcharges, accessorial charges, agreed indexations and other rate increases. Next to that service level analysis and alternative transport solutions are important to consider when focusing on the reduction of the overall spend.

The methodology we provide to our customers includes five elements which can be included all in one project or be executed separately:

A  Transport partner/carrier selection & portfolio assessment

To make sure our customer’s transport rates remain best-in-class and that they work with the most suitable and best mix of transport partners, we support you with our transport tender process (including the use of state-of-art tender tools). When the rates are agreed, creating a solid contract including KPIs, review cycle set-up, termination clauses with poor performance and rate renewal process is important. Together with our clients we conduct the negotiations and support the contracting phase.

B  Best-in class transport rates and benchmark against your peers

Based on our knowledge of the transport market and the dozens of tender project we support on a yearly basis, we are able benchmark rates as well as the overall costs against the peers of the clients and make sure these rates stay at the right level.

C  Transport network optimization

Assessing potential improvements to your transport network is a proven method in reducing the overall spend. For example consolidation/deconsolidation of flows, multi drop analyses, zone skipping, alternative pricing methods, service level changes (lead time relaxation) and alternative modalities. Through a menu of optimization recipes that can support you to optimize your transport network in all modes of transport. This way the transport services your (internal) customers with the correct service levels against the lowest possible cost and carbon footprint.

D  Transport organization assessment & improvement



The transport organization assessement includes next to operational activities also on:

• Strategic activities: e.g. transport sourcing strategy and IT system required
• Tactical activities: e.g. carrier management and standard operating procedures

This assessment focuses on the internal view (internal stakeholders), external view (benchmark with peers) and the future view (what is required to meet future challenges). In the end, the advice to our customers includes a reviewed organization set-up including people (organization set-up and roles), processes (activities and responsibilities) and related systems (Transport Management Systems, Track & Trace, etc.).

E  Reduction of carbon footprint

Carbon footprint reduction is next to cost and service levels one of the key questions we support our client with. Nowadays, carbon footprint is an important decision criteria for transport network and we use our carbon footprint measurement and optimization framework to assist the reduction of the environmental impact of transport.