Freight Transportation Industry Overview
Investments in the infrastructure have made Sweden as one of the top logistics markets in Europe. The central location of the country in the region makes it preferred choice for most companies that look to consolidate distribution and warehousing activities in Northern Europe to one central location. However, the fragmented nature of the freight transportation industry makes it difficult for logistics managers to meet customer expectations and ensure on-time delivery. This case study is a classic example of how we helped a company to improve their transport efficiency and increase the fill rate.
Business Challenges Faced
The client, one of the largest freight transportation companies in Sweden was facing predicaments due to fragmentation in transport flows. This growing fragmentation and focus on customization was impacting the efficiency of their transport network. Also, the decrease in fill rate and end-customer demands was creating pressure on the client to improve their transport efficiency and redesign their business model while maintaining profitability. However, the client lacked the necessary insights involved in the transport network. The client, therefore, collaborated with SpendEdge to optimize routes, change contractor agreements, improve business relationships and increase the power of transactions in the supply chain.
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Our Research Approach
To help the client develop an effective business plan, the experts at SpendEdge performed a detailed freight transportation industry analysis. They identified intermediary companies (transaction level) who couldn’t fulfill their contractual obligations. This helped the client to change the interface between stakeholders and become more transparent to meet with digital information in all stages of the supply chain. Also, our recommendation to include transport planning and the procurement process in the digital information flow improved route optimization and resulted in significant savings in driving time.
The comprehensive freight transportation industry report also helped the client to improve contract visibility and support procurement managers right from the agreement in principle to contract execution. This helped the client to associate with better intermediary companies and get the best possible terms during every transaction. Moreover, the improvised business model empowered the client to identify strategic contractors involved in the process.
SpendEdge’s customized freight transportation industry report helped the client to improve supply chain visibility. Also, the insights offered improved the transport planning and optimized the route, reducing the driving time by 33%. The solution offered further improved the transport efficiency of the client by 40% and increased the fill rate significantly.
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Best Practices for Companies in the Freight Transportation Industry
- Have a clear understanding of licensed intermediaries who work to link up shippers with qualified carriers when they have products to move.
- Check the legitimacy of intermediaries in order to operate the business legally.
- Associate with suppliers who have some degree of experience in the business and formal education in the industry.