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International and Domestic Freight - Case Study 2

Manchester Importer and Distributor - Adelaide Based

Our Client is a multi national importer & distributor of name brand manchester products that has an extensive variety of small, medium and large freight movements both road express and economy road service within Australia.

They utilised a number of suppliers internationally and wanted to consolidate and save money in the process.

T&DC's brief was to identify suppliers that could satisfy the client's precise product handling and delivery requirements.

The main issues to be considered were:

  • A full review of international freight, including third party outsourcing in China.
  • New Zealand's distribution review.
  • Exports to many overseas locations both out of Adelaide and from overseas.
  • Domestic air freight review.
  • Domestic freight review.

Background and Challenges

A large number of freight suppliers were already in place. The challenge was to identify the "Best Fit", not necessarily a single supplier, but those with specific skills with certain areas of expertise.

This was the case not just for the international review but also the domestic road freight review.

Additional Review aspects became apparent as T&DC progressed through the various stages. These included;

  • An industrial waste review.
  • Pallet cost reduction review.
  • Warehouse pick-and-pack cost review.
  • Negotiate the purchase of 22 high reach forklift trucks.
  • Review origin and local freight costs in other countries.

It was apparent from the outset that this client was looking at a major restructure, This became further apparent once the client became fully aware of the depth of knowledge available through the staff and management of T&DC.

Final Results Achieved

This multi faceted review brought about many significant savings:

  • A reduction in the number of suppliers. Suppliers were selected for their capabilities specific to the client's needs.
  • Ongoing customer service support from each supplier segment - something that had always been taken for granted by previous suppliers.
  • Support and account checking from T&DC saved thousands more in incorrect charges being applied to weekly accounts, which had never been fully capitalised upon previously.
  • Opportunity to consolidate suppliers further, both nationally and internationally.

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 Spend Saving
$2 400 000.00 $1 980 000.00 $420000.00