The German TIER1 automotive supplier with ten-thousand employees worldwide had hired two transportation experts and managers in order to analyses the inbound transportation costs, implement a transportation management system in Europe and train all the logistic employees in nine production locations in Europe and their main suppliers in using the transportation management system. Select some forwarding companies who should pitch for the trips. The client gained savings of twenty to thirty percent per trip.
As the next step the client wanted to save transportation costs in its 1 billion US market. Therefore the client hired a transportation expert from Cerius Executives. He should analyze the transportation organization in the US and increase efficiency and finally save costs.
- Participate in all frequent calls and meetings with regards to transport management
- Liase with Transport Logistics as well as with Controlling, Accounting, Procurement (conduct interviews, collect status, minimum requirements and expectations)
- Assess the efficiency of the 4PL transport services against pre-agreed targets. If there are no targets, make use of US industry benchmarks
- Identify roles and responsibilities currently in place in the 4PLs organization and at the client (from Transportation demand to transport assignment to delivery to payment)
- Identify transport logistics budgets and plan forward, find existing measures and/or define improved measures. Identify cost saving initiatives past and present and their results.
- Review the 4PLs reporting and make proposals or improved reporting (content and format) on a monthly basis or as otherwise required
- Review the 4LPs liaison, support and assistance with the whole of the clients organization
- Assess the invoice control process (external company) and outline their duties and results
- Assess all duties along the transportation management process are in compliance with related legal/statutory, regulations, professional duties, responsibilities and obligations
- Come up with new ways to optimize the transport service purchasing based on market intelligence and liase such proposals internally
- Propose state of the art U.S. transportation services procurement and management approach
- Identify mayor transportation service platforms (B2B) and assess their feasibility for the client demand
- Propose organizational setup in order to improve the management of transportation
- Propose a process map for managing, directing and monitoring the overall performance of the transport to increase efficiency and maximize service, performance, value and savings
The US transportation expert found out that there are room for improvement and savings in the inbound transportation activities. He was in close contact with the German transportation experts, but he found out that the new European transportation strategy for the inbound trips where not the right solution for the US activities. He concentrated on improving of the existing organization and processes.
Finally his activities created savings which are amortized in twelve months. The savings were much higher than his fees. The client hired a new permanent transportation expert and the expert from Cerius Executives has trained him.