CARRIER SELECTION & NEGOTIATIONS

Scope

Establish has the expertise, tools and experience to handle all transportation modes:

Motor Carrier Freight

Parcel

Air Freight

Ocean Freight

 

Objectives

Establish can help you reduce your freight costs significantly while securing consistent and competitive shipping service to your customers. Besides the negotiations, we also leverage synergies in your freight flows to consolidate and utilize more advantageous modes.

  • Reduce transportation rates

  • Optimize mode selection

  • Improve service level and transit time


Deliverables

Every project is different, but typically, the five main deliverables are:

1. Initial Benchmark

Estimate of potential savings to set targets for the negotiation.

2. Negotiation Strategy

Develop a negotiation strategy for new rates for your transportation requirements.

3. Scenario Simulation

What-if analyses to develop strategies and during negotiation.

4. Response Matrix

A matrix of all carrier responses to the RFP process with total costs.

5. Quantified New Costs

Quantify the new transportation spend after finalizing the contracts and the delta vs. current spend. 


Methodology

The Establish Way


Establish has unique qualifications within transportation consulting services:

Experience

Establish has a long and hands-on experience in the transportation market and has specified and negotiated billions of dollars worth of freight.

Tools

Evaluation tools to ensure that the freight spend is focusing on the areas where it matters the most and that proposals from different carriers can be compared according to what is important for you.

Benchmarking

Ability to benchmark what are the best rates for your transportation. This is done from historical data or through the present market situation.

Implementation

Establish will help you with implementation of the new transportation system as well as follow-up.

 

For more information on our transportation consulting services and how Establish can help your company design or optimize your transport system that enables efficient and effective delivery of products to your customers, send us an email or call us.

Why establish?

TOOLS & METHODS

Within transportation management, we are using state of the art tools and methods. Below you will find some of the more important tools.

 

Route4Me

CzarLite

PC Miller

Logivations

Mercury Gate

Supply Chain Guru

SQL

XACT Negotiator

Establish Logistics Best Practices™

CASE STUDIES

Establish has a long track-record within transportation management. The case studies below are just a few examples of achievements from Establish supply chain consultants together with clients within transportation management.

 

Transportation Negotiations

A detailed description of a typical transportation negotiation spend reduction project.

Carrier Negotiations

How much can you save and examples of focus areas for carrier negotiations. Step-by-step case. 

Freight Rate Benchmarking

Freight rate benchmarks as a tool to lower freight costs.

Five Reasons for High Transportation Cost

Practical example about typical areas to focus on for lower transportation costs. 

Lower Transportation Costs With Load Planning

Find out why high transportation rates are not always the root cause of inflated transportation costs.

Supply Chain Strategy - Consumer Electronics

A client case study from a consumer electronics company from where Establish performed a detailed benchmarking with competitors to changed transportation concept and a reconfiguration of the client’s distribution network.

Supply Chain Analysis - Consumer Electronics

Read about how Establish helped a manufacturer of consumer electronics reduce the transportation costs by benchmarking, negotiations and optimization of the distribution network.