Logistics Provider Utilizes Supply Chain Analysis to Reduce Transportation Costs by 15%

Category Overview

Recent advances in technology are changing the outlook of the current logistics industry with large manufacturing industries heavily relying on effective fleet management solutions to reduce inventory and operation costs. With the rapidly changing business and consumer demands, organizations are shifting toward lean logistics processes to optimize their current logistics networks. Apart from the movement of goods and services, the logistics industry also includes services such as warehousing, materials handling, fleet management, inventory management, and order fulfillment.

To better facilitate the flow of goods across the target audience, leading logistics service providers are adopting effective supply chain analysis solutions. With years of expertise in offering similar services, SpendEdge’s supply chain analysis solution assists the client to improve operational efficiency and offer better services to the customers. With the help of the innovative supply chain modeling tools, clients can gain better flexibility to meet the changing consumers’ needs, enhance relationship with the customers, and achieve better visibility throughout the supply chain.

The Procurement Pain Point and Insights Offered

With the recent fluctuation in fuel prices, leading organizations in the logistics industry have started witnessing a radical decline in their market shares. A renowned logistics service provider was also facing similar issues and was under intense pressure to reduce transportation costs to meet the changing business and consumer demands. The client wanted to reduce costs and inefficiencies in the growing inbound transportation network. Furthermore, the client also wanted to increase the overall visibility of their supply chain processes. In addition, with the rising demand for transportation services, the client wanted to leverage SpendEdge’s supply chain analysis solutions to offer flexible and agile transportation services.

To effectively reduce costs and improve efficiency, the supply chain specialists at SpendEdge carried out a comprehensive research methodology comprising primary and secondary research with leading stakeholders in the logistics industry. During the course of the supply chain analysis engagement, the client was able to carry out a comprehensive study of the client’s inbound transportation costs in terms of the prevailing processes, infrastructure, and personnel. Furthermore, the engagement helped the client identify the low parameters within the supply chain and recommend effective tools and processes to track the supply chain activity effectively. Additionally, the engagement further helped develop a three-phase approach to assist the client to achieve better supply chain visibility and accountability in the logistics industry.

Key questions answered in this supply chain analysis include

Business Outcome

The supply chain analysis helped the client gain real-time updates on how to reduce transportation costs by 15% and decrease inventory and freight costs. With the aid of competitive benchmarking, the logistics provider was also able to gain information on precise routing to bolster the overall carrier accountability. Furthermore, the client was also able to gain real-time updates in terms of carrier delays, which, in turn, improved supplier and carrier performance.

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