Our 3-Phase Model
With the 3-phase model, we accompany our customers step by step on the way to a high-performance transport logistics. Optimization potentials are realized and financially calculable as savings.
Analytics & Methodology
The first phase consists of two different analysis steps. In the field of action analysis, the logistics of the customer are examined together with the management from the helicopter view in order to identify relevant focus areas. After defining the fields of action, the detailed analysis and data collection are carried out in the Freight Check. As a result, the customer receives a for an optimized and sustainable transport management.
The field of action analysis is a ½-day workshop to identify the logistical fields of action in the customer’s company. Together with the management we are working on the core areas to the way to an individual logistics strategy. The customer receives a field of action definition adapted to the logistics of his company for deeper analysis and project definition.
Based on the results of the Area of Activity Analysis we do with our supply chain experts in a one-day workshop our “Freight Check”. We analyse the current situation and processes of the customer and consolidate reiceived data. After the data analysis the customer receives a summary with a potential analysis and a basic concept for the implementation.
The second phase runs under the motto “Proof of Partnership”. Together with us, the customer implements the detected potentials in individual projects. The goal is the short-term realization of savings. In addition to project contracts on a man-day basis, we also offer saving-based compensation models. The customer has low investment costs and pays only in case of success proportionately of the savings achieved. The necessary tools are provided by us and are upon agreed with the customer.
Most companies use complete trucks (FTL) for their intercompany traffic from factory to factory. Experience has shown that the average load of trucks is between 50 and 65%. The reasons for the low utilization are manifold and often small adjustments are enough for improvements. We analyze the causes of the defective loads and work out countermeasures in the project team. The development is measured by KPIs with the aim of achieving a capacity utilization of at least 90% for FTL transports
Tenders are strategic projects that require different approaches depending on the mode of transport. Our standardized approach combined with our expertise has proven that average savings of over 10% can be achieved. Our experts apply the Harvard principle and negotiate win-win situations so that monetary improvements never have a negative impact on the quality.
One component of the Freight Check is the documentation of the process landscape. The processes are examined with regard to complexity and optimization potential. Time wasters are eliminated, processes simplified and supported by technical aids. The additional resources can be used by the customers in order to focus on their own core competencies.
Many customers have their own specialized staff, which deals strategically with the purchase of freight rates and the evaluation of tenders. The evaluation of the RFQs is often done in Excel. This procedure is absolutely sufficient to a certain degree of complexity. If, for example, a RFQ for European road transport is running with several plants and many thousands of transports, the limits of the calculation options can be quickly reached with Excel. Here we can support our customers with the RFQ support and our simulation software. The customer receives short termed simulation scenarios, to evaluate the results and prepare his service provider meetings.
About 80% of all European companies pay too high freight costs. Often, companies even have different prices for the same services and routes and ship at the more expensive rate. This is a common problem, especially when shipping parcels (KEPs) with complex rate formats and surcharges on the side of the parcel service providers. We support our clients in benchmarking freight rates and finding the lowest freight price. Together we work out a matrix for the cost-optimal allocation of the transports base on the existing freight rates.
Solutions & Services
The final phase focuses on the sustainable securing of potential savings and the continuous improvement of transport logistics. To do this, we offer our customers a cloud-based, modular SaaS solution with our Freight Management System. A short-term integration for a first location is possible within 2 weeks. The customer receives the worldwide transparency of his transport costs and product flows.
All freight information and logistics service providers worldwide are operationally implemented in our freight management system. The customer receives the full transparency of the different service provider, cost development and volumes to monitor and optimize the transport costs. Globally producing companies with a high number of logistics service providers and different ERP systems receive a standardized data pool.
Many companies do not have a standardized rate format and use the formats of the service providers. As a result, prices for the same services and routes are often not directly comparable. Our rate management creates the necessary comparability and shows different rate formats in a transparent and standardized way. This is the basis for further simulations for cost reduction (what-if simulations) or price comparisons between service providers. We also support our customers in designing standardized rate formats for all modes of transport.
A 100% invoice checking of all transports without technical support is time-consuming and hardly feasible. In the case of missing or random audits, companies pay an average of 2 to 3.8% on freight costs too much. By default, our service includes a full invoice verification and guarantees 0 € over-invoiced invoices. In addition, freight invoices can be pre-assigned according to all required criteria.
As part of our invoice management, we find differences in freight invoices. The complaint of the differences at the service providers can be passed comfortably to us. We will automatically contact the service provider through our email escalation process and ensure the receival of the credit notes.
Continuous Improvement is a popular buzz word, but often fail in the practical implementation. Next to the right attitude, technical support is required to continuously and regularly compare the actual states and target states with the KPI’s. System-based KPI’s are the basis for us to constantly track the performance and cost development over the timeline together with our customers and to take corrective action when needed and to define common measures.