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Domestic Road Freight - Case Study 1

Production Company - Brisbane Based

Our client is a large production company that has an extensive variety of frieght sizes and types requiring specific time sensitive actions to be adhered to by there freight carriers.

T&DC's brief was to identify a supplier(s) that could satisfy the clients precise product handling and delivery requirements.

The main issues to be considered were:

  • Delivery in full on time
  • Effective account management
  • Competitive pricing structure
  • Specialised delivery vehicle as required
  • An IT solution that could integrate into their existing WMS
  • Track and trace functionality with reporting
  • Out of hour pick-up and delivery capability

Background and Challenges

A variety of suppliers including the incumbents were approached and given a 12 month data overview, detailing a full historical usage pattern.

Confidentiality was paramount to protect the incumbent supplier's data and rates , as it is with each and every review conducted by T&DC.

A distinct potential for a single supplier solution existed, but the basis of the success of this potential outcome would be to identify the "Best Fit Supplier", without excluding the opportunity presented through the re-negotiation with the incumbents.

Potential carriers must have been willing and capable to transport small cartons through to large print form managment tasks involving numbers of pallets.

Additional consideration must be given to those carriers with the opportunity to manage and service consistently a client that will require very levels of service fulfillment.

With a shrinking market in the Australian Domestic Road Express Freight arena, this was not going to be an easy task - an outcome was required that brought about a win/win for all concerned - the best fit carrier willing and able to conduct themselves as required to ensure a smooth transition and on-going client satisfaction.

Final Results Achieved

Through a grueling process of identification, Assessment and Elimination a short list of carriers was derived. The final outcome identified the following benefits for our client:

  • A single supplier solution - large nationally based, privately owned carrier.
  • An IT Solution which could be modified and integrated into the existing WMS.
  • Extensive capabilities of the new supplier to modify existing aspects of their service to suit the needs of our client.
  • Local and National account management.
  • T&DC's post implementation invoice vetting and account checking process was implemented and the results are on track, alsmost 12 months after the review was finalised. Monthly reports detailing cost comparisons from previous carriers to new carriers substantiate the T&DC management fee.

As a result of the T&DC review process the following financial benefit was provided to our client:

Previous Per Annum Spend Estimated New Per Annum Spend Estimated Per Annum Saving
$611000.00 $392000.00 $219000.00