Transportation Services Industry Overview
The transportation services industry in the United States is highly competitive. Global businesses and international traders rely heavily on transportation services to move goods across various regions. By investing in transportation services, multinational firms can effectively position themselves to improve the flow of goods.
Advancements in technologies have helped companies in the logistics and transportation services industry to improve the quality of their services. Even though more opportunities are going to open for players in the transportation services industry, certain factors including shifts in consumer behavior, acute driver shortage, and new demands on the frequency and types of deliveries are placing a squeeze on the entire transportation services industry.
Spend Analysis – A Step in the Procurement Journey
Businesses often tend to make a mistake by allocating funds without the right data and spend visibility; thus, sending the company’s budget down the drain. Spend analysis is the process of collecting, categorizing, and analyzing spend data to understand spending trends and distinguishing saving opportunities. Spend analysis reports help an organization to gain true spend visibility across geographies; thereby, recognizing and evaluating expenses throughout the supply chain. With the aid of spend analysis tools, organizations can classify and analyze the company’s expenses to reduce the overall procurement costs. If done properly, it can prove to be extremely beneficial to the business and contribute to the organization’s top line.
About the ClientÂ
The client is a leading transportation services provider established in the US. The company employs over 10,000 people.Â
Cutting costs without compromising process or product quality is a crucial objective of every organization. Spend analysis will help you achieve this objective. Request for a FREE proposal!
Predicaments FacedÂ
The client, a leading firm in the transportation services industry with their network spread across the globe wanted to identify robust sourcing opportunities and reduce unaccounted spending. With SpendEdge’s spend analysis reports, the client was looking to implement a more efficient processing platform to enhance the spend capabilities and boost the transparency of their business spends. Additionally, by employing spend analysis tools, the client wanted to identify the potential bottlenecks in terms of savings leak, prices vary, and purchasing overlaps and compare the spend of the company with that of the industry competitors.
Solutions DeliveredÂ
With the help of SpendEdge’s spend analysis reports, the client was able to develop a centralized framework that helped them to stay up-to-date on the spend records and control maverick as well as fraud and other non-complaint activities. By employing spend analysis tools, the client was able to gain better visibility into spending across the board, improved their overall procurement process, obtained insights into significant cost savings opportunities and devised a robust negotiation tool for further sourcing strategies. Since SpendEdge’s spend analysis tools had the capability to seamlessly integrate spend data from several sources, the transportation services provider was able to aggregate and visualize data to make better sourcing and supplier decisions. Furthermore, by leveraging spend analysis reports, the client was able to make improvements in compliance, lessen cycle times, and uncover maverick spend. With the help of SpendEdge’s spend analysis reports, the client achieved a total savings of over USD 20 million, annually.
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