Transportation Procurement: Cost Savings Guaranteed

Transportation ProcurementAre you spending the right amount for transportation?  One of the most expensive pieces of the logistics puzzle is transportation procurement.  Typically businesses allow their individual warehouse operations to make their own transportation procurement decisions.  With so many variables involved with transportation fees there could be situations where one warehouse is spending too little at the risk of poor quality, while another is spending too much for services that are not needed.

A holistic review of your transportation expenses is a good first step in getting your costs under control while keeping your service level efficiency and quality high.  By understanding your current situation your business is better equipped to identify issues and set goals for improvement.

The TMG Proven Methodology

The professionals at TMG have a proven methodology that will review your current transportation procurement processes and find cost savings opportunities that you can implement quickly and easily for your business.

The TMG process will perform the following tasks:

  • Comprehensive assessment of all transportation expenses including
    • Assets and leased equipment
    • Contracts
    • Mileage trends
    • Fuel consumption
    • Capacity and load utilization
    • Service area mapping and process flow
  • Benchmark with industry best practices to find optimization opportunities
  • Key performance measure definitions and objectives
  • Lane-level baseline database analysis to find consolidation options
  • Route and capacity planning analysis
  • Carrier quality and service levels
  • Request for Proposal (RFP) development and bid optimization
  • Deliver tracking, reporting and analysis utilities that can be used before, during, and after changes

Important Criteria to Consider

TMG will take the time to evaluate your existing transportation processes and determine where there could be opportunities to negotiate agreements with key carriers that will benefit all warehouse operations.  The key criterion for the evaluation involves the carrier mix, routes, service levels, time constraints as well as costs.

Once the criteria are identified, TMG will use their industry knowledge to compare best practices and develop a customized RFP that is specific to your unique business needs.  TMG can then facilitate the negotiation and implementation process so that there is minimal impact to your customer service levels while your business reduces overall expenses for transportation.

The Time is Now

If your business has not conducted a transportation procurement evaluation in the last two years, there is a good chance you are leaving money on the table.  TMG has the industry knowledge and skills to dig into your transportation spend and find opportunities to maximize quality while finding tangible cost savings.  Download the whitepaper to find out even more information, or contact TMG to discuss options to save money for your entire logistics operation.