LOGISTICS COST BENCHMARKING
The only way to guarantee your rates are competitive is to know what other options are available in the market and to understand what the best strategy should be to maximize your savings.
Simply provide us with some sample invoices from your existing logistics service provider and we’ll review the rates and let you know within 24 hours where we think we can save you some money and what we think is the best strategy to maximize your savings.
After reviewing your existing rates we will most like recommend one of the two strategies outlined below.
REVIEW AND RE-NEGOTIATE
In most cases the most efficient strategy is to re-negotiate with your incumbent service provider.
When we undertake this option we’ll ask your incumbent service provider to submit a revised schedule of rates.
While it’s easy enough to request a rate review and in most cases the result will be a slight reduction in the existing charges.
But how do you know if your new rates are the best that the market has to offer?
By combining our deep knowledge of the logistics market and using our comprehensive database of logistics costs as a reference point, we will ensure your new rates are both relevant and competitive.
REVIEW AND REQUEST QUOTATIONS
In other cases it may be better to undertake a formal request for quotation (RFQ) or tender process to maximize your savings and to ensure that your existing service provider hasn’t become complacent and is taking your relationship for granted.
In this instance we will include the incumbent service provider but we’ll also invite a number of other suitable service providers to submit their rates.
We will manage the project from end to end including developing the necessary documentation , identifying suitable logistics service providers, external communications, analysis of proposals, negotiating the final rates, providing a recommendation and managing the transition from the incumbent to a new service provider if you decide a change is the best course of action to maximize the savings.
How We Can Help
We know from first hand experience that despite all good intentions the majority of logistics and supply chain managers are simply too busy to effectively pursue all of the potential cost saving and process improvement opportunities that exist within their organizations.
At the end of the day money is being left on the table and we exist to help companies to solve this problem.
- 5 to 20% reduction in logistics costs
- 1 to 7 days improvement in transit times
- 50 to 100% increase in costs recovered
- 20 to 80% reduction in carbon footprint
- Faster identification and realization of logistics cost savings
- Improved cash flow