A global consumer electronics company realised freight savings of 42% by in-sourcing management of freight services

Our client was experiencing phenomenal revenue growth but existing logistics arrangements including outsourced warehouse and distribution services were escalating as a result of increasing volumes. The decision to move to an in-sourced logistics operation required freight services to be tendered with services and cost structure being realigned to the new strategy.

While opportunities for reduction in freight spend were identified our client was experiencing serious customer delivery failures which needed to be addressed quickly as part of an in-house managed solution.

In preparation for a national freight tender Logiworx developed a clear specification of freight tasks including customer and home deliveries. The first critical step was the segmentation of these tasks based on service lead-times and consignment profiles. Logiworx ran a full national freight tender aimed at consolidating freight partners, locking in service improvements and achieving a substantial reduction in freight spend. Responses were fully analysed and prospective partners capabilities in relation to infrastructure and IT systems carefully assessed. Once selection was finalised, Logiworx worked with the client and strategic partners to implement and transition to the new arrangements. New despatch procedures were developed and documented and transport management software implemented and integrated with warehouse management and track and trace systems. Logiworx developed a carrier management framework and ran carrier reviews during the transition process before handing over to the in-house team. Logiworx has continued to work with the client reviewing carrier performance and running subsequent tender processes

A 42% reduction in freight spend was achieved as a result of the work carried-out. Service failures were addressed and our client is now seen as the top performer in customer service within the industry helping it to achieve market leadership status