Freight Sourcing Best Practices

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Freight strategy deployment across business units requires data management, opportunity analysis, process discipline and communication.

  • Freight Sourcing - Managing freight spend across business units is complex due to coordination of multiple business units, a fragmented supply base and agreements with plant operations and suppliers.
  • Market Developments - If done correctly, the current market situation allows for significant savings through a structured freight RFQ.
  • RFQ Preparation - Thorough data collection and team engagement are crucial.
  • Data Visibility - Auditing usage provides visibility into performance against contracts and is critical to secure the best value during a RFQ.
  • Industry Benchmarks - Cost & Capital's benchmark of freight rates and contract terms allows for quick target setting and gap analysis.
  • RFQ Evaluation & Optimizer -Freight quote management is complex due to regional pricing, multiple cost items and contract variation - the Cost & Capital freight quote optimizer quickly assesses supplier quotes and can allocate business to maximize savings.

Our approach is to work closely with Operations and Purchasing to review existing contracts and inventory requirements, map the value chain, identify alternate suppliers, model the savings opportunities, develop quote documents and negotiate directly with suppliers.

Please click here for more information about best practices and our approach.