In many businesses today, expenditures for inbound and outbound shipments account for more than half of all supply chain costs. The reason is often a lack of transparency in transportation networks that have developed over time without being thoroughly optimized for many years.
In the future, transportation costs will continue to rise due to the increasing complexity of global supply chains, large increases in volume, or new locations, products or markets.
Typical reasons for opting for transportation optimization include the existence of poor transportation equipment, decentralized decision-making about transportation, an abundance of local transportation service providers or single 3PL sourcing, in addition to high cost for express shipments and special deliveries.
4flow supports businesses in all areas with the reduction of transportation costs and the concrete implementation of actions for improvement.
For businesses in the manufacturing sectors, such as the vehicle and machinery manufacturing industries, our experience has shown that potential transportation cost reductions of 10% to 20% are achievable. For consumer goods and retail businesses, savings of 5% to 10% of transportation costs are possible. In addition to immediate cost reduction, the focus is also on those measures to sustainably reduce costs.
Some of the immediate results we achieve for our clients include:
- Creating quick transparency and analyses of transportation costs and structures (with 4flow vista®)
- Examining the transportation strategy and management processes
- Evaluating and benchmarking the transportation costs
- Identifying and coordinating possible fields of action
- Defining and implementing actions
- Short-term and immediate measures can include:
- Optimization and consolidation of transportation structures
- Introduction of new delivery modes
- Retendering of shipping and transportation
- Optimization of loading equipment and means of transportation
For sustainable results, 4flow recommends continuous dynamic transportation management using the following solutions:
- Introduction of continuous strategic, tactic and operative transportation planning
- Redesign of transportation management processes
- Application of an integrated transportation management system
- Create an organization for integrated transportation management, either internally or as a managed service (4PL)
We look forward to hearing from you.