AIR FREIGHT NEGOTIATIONS
Scope
Process improvements, RFQ management and negotiations of air transportation.
Objectives
Establish can help you reduce your air freight costs significantly while securing consistent and competitive service to your customers.
Reduce transportation rates
Optimize mode selection
Improve service level and transit time
Deliverables
Every project is different, but typically, the five main deliverables are:
1. Initial Benchmark
An estimate of potential savings to set targets for the negotiation.
2. Negotiation Strategy
A negotiation strategy for new rates for your transportation requirements.
3. Scenario Simulation
What-if analyses when developing strategies and during negotiation.
4. Response Matrix
A matrix of all carrier responses from the RFP process with total costs.
5. Quantified New Costs
A quantified new transportation spend after finalizing the contracts and the delta vs. current speed.
Methodology
The Establish Way™
Establish has unique qualifications within transportation consulting services:
Experience
Establish has a long and hands-on experience in the transportation market and has specified and negotiated billions of dollars worth of freight.
Tools
Evaluation tools to ensure that the freight spend is focusing on the areas where it matters the most and that proposals from different carriers can be compared according to what is important for you.
Benchmarking
Ability to benchmark what the best rates for the transportation you buy should be. This is done from historical data or through the present market situation.
Implementation
Establish will help you with implementation of the new transportation system as well as follow-up.
For more information on our transportation consulting services and how Establish can help your company design or optimize your transport system that enables efficient and effective delivery of products to your customers, send us an email or call us.
Why establish?
TOOLS & METHODS
Within transportation management, we are using state of the art tools and methods. Below you will find some of the more important tools.
Route4Me
CzarLite
PC Miller
Logivations
Mercury Gate
Supply Chain Guru
SQL
Establish Logistics Best Practices™
CASE STUDIES
Establish has a long track-record within transportation management. The case studies below are just a few examples of achievements from Establish supply chain consultants together with clients within transportation management.
Transportation Negotiations
A detailed description of a typical transportation negotiation spend reduction project.
Carrier Negotiations
How much can you save and examples of focus areas for carrier negotiations. Step-by-step case.
Freight Rate Benchmarking
Freight rate benchmarks as a tool to lower freight costs.
Five Reasons for High Transportation Cost
Practical example about typical areas to focus on for lower transportation costs.
Lower Transportation Costs With Load Planning
Find out why high transportation rates are not always the root cause of inflated transportation costs.
Supply Chain Strategy - Consumer Electronics
A client case study from a consumer electronics company from where Establish performed a detailed benchmarking with competitors to changed transportation concept and a reconfiguration of the client’s distribution network.
Supply Chain Analysis - Consumer Electronics
Read about how Establish helped a manufacturer of consumer electronics reduce the transportation costs by benchmarking, negotiations and optimization of the distribution network.