Strategic Transportation Bidding With Sourcing Technology

Transcription

1 Strategic Transportation Bidding With Sourcing Technology Agenda Who we are The reality we live in How this reality is affecting your daily routine Transportation Spend Management Transportation Spend Controls The Space Odyssey Not all created equal Why Technology Conclusion 1

2 Who we are Daniel Vendette, MBA, CCLP Over 30 years in Transportation SCM consultant, done project for international Company, SME Overs 100 Project in SCM overs the years Owner of 2.0 Consulting Mark Maxwell 12 years Transportation sourcing experience at IKEA Sourcing Solutions Expert and Sales Director attrade Extensions The reality we live in? What seems to be straight forward and easy is getting more and more complex In addition to market constraints: driver shortages, tighter capacity and more and more regulations, etc. What s next? They ll ask us to go to the moon! 2

3 How reality is affecting your daily routine Today, we expect more for less We want to reduce our spend for the same work Shipments are more and more demanding Freight is getting more complex to move The time crunch doesn t allow us to do our jobs correctly: Don t ask IT to help, they are in the same boat Accounting, short staff too! But we need all of them to get it done So where to start? What is the story with spend, transportation, technology and me 3

4 Transportation Spend management How to manage your Spend? Use of a TMS solution, but: Only 13 % of companies use one Freight auditing solutions, but: Is the proper information available for them to be successful? Aren t they only validating BOL towards a rate matrix? Transportation centralization, but: Warehouses or plants want to operate their own way, and they don t want to follow arouting guide. Many have excuses not to. Do the best you can with little or no tools (and some of us are very good at it) But do you really know what your spend is and how efficient your are? Transportation Spend Controls Adopting a best in class Transportation management approach, you can cut 5 to 7 % of logistics related cost as a % of sales That is $ to $ for every million dollar of sales. Profit goes up! How can you get there? Do you know what your annual spend in transportation is? Do you know where to look to get there? 4

5 Ok I get it! But that being said, I have no tools to do it and no time or budget to implement. Get Started Like any major project, getting the right support and the right tools is paramount. Think outside the box, how to get there with a minimum investment. Let s say you are spending 10 millions $ in freight, and that you could save between $ to $. Never mind, let s say 50 % of that or $. Would you invest to get such a return? I think you would get your CFO s attention! 5

6 How? 1. People (Internal and/or External) 2. Process 3. Technology Sourcing Process Operations Operational Implementation Project Planning, Timeline and Data Award + Contract Set Up RFx Legal, RFi, RFp, RFq Decision Scenarios and Reporting Negotiation Launch + Bid Collection 6

7 Technology Manages and aggregates large data sets Automates the sourcing process Traceability and management of bidders Visibility across stakeholders organization Facilitates complex computations for optimal results Ok I m no rocket scientist, where are we going? 7

8 How to achieve results? 1. Get data. From your IT department, from operations or from your accounting department; create a baseline. 2. Structure your data in a presentable way. For vendors that is. 3. Try to cover as much of reality as possible. 4. Make sure that added costs such as accessorial charges are there too. 5. Use technology to help you navigate through your process. 6. Plan what your goals are Create a Control Center From the control center you can Define roles and responsibilities up front. Invite interested personnel from your organisation to participate as an observer, a manager and as a project support. Successful projects are managed in a team. From the CFO, a Supply Chain Executive, all the way to your team; everyone has their goals and objectives. You should include those in your project and evaluate whether they were achieved. 8

9 Dashboard view From the Dashboard you can manage all your important items such as: Timelines Phases(rounds) Documents Carrier status Communication FAQ Instant Messaging Carrier progress - reports Most important is that it is easy for carriers to use Get ready to launch! Now that you have all the pieces, everyone knows what they need to do, your path is set, you are good to go! 9

10 But let s get back on earth for a moment! Not all shippers are created equal It is true, not everyone is the same Some have TMS solutions Some have access to analysts Some are alone to manage freight as best as they can We all can do a better job at managing freight spend All of us need to reduce spend Not all of us can easily crunch data or have access to data Process and technology could ease your pain 10

11 The challenges we face More and more Mergers and Acquisition Very limited time Need to be a champion to realize savings, or at minimum mitigate increases. Need to cut more resources. Why use technology to reduce my spend 1. Your project is aligned and visible from all levels of management Everyone has access but with different permissions 2. Comparing apples to apples 3. Flexibility allows you to dictate the format 4. Easily provide bidders with information 5. Complete traceability 6. Formula driven evaluations not only on price, but on quality, industry trends, capacity, leadtime, etc. 7. No more excel spread sheet limitations, bogging down, to consolidate, to analyse and to understand. 11

12 After bid completion, what s next? Award and implement Rate auditing Mode transfer analysis Peak season management Reporting, Dashboard and on-going KPI Proactively manage Technology Cloud technology is accessible and inexpensive It requires no integration or hardware Easy of use for suppliers Streamlined, consolidated and centralized 12

13 I get it! So let s recap Potential of more than 5 to 7% savings using people, process and technology; Only 13 % of shippers use a TMS; No integration, minimal investment Proactively manage your business Leverage your spend 13

14 You are the hero you deserve to be! About 2.0 Consulting Recently created, 2.0 consulting is a consulting management firm based out of Montreal, Quebec. We specialize in SCM operational consulting and leverage technology to it s very best in order to help our customers get the results they need and to give them a competitive advantage. Our expertise is in Sourcing and Procurement in MRO to Logistics. We have mandates from international firms to SME. Our team has completed over 100 projects. We are leveraging Trade Extensions technology to help our customers control their spend under management. Our expertise lays in helping companies move faster throughout the learning process and to leverage technology. We also offer Business process Outsourcing of the bidding and auditing processes. 14

15 About Trade Extensions Platform Trade Extensions technology and expertise enables businesses and sourcing professionals to make better sourcing decisions decisions that are strategically-aligned and optimized against operational constraints. The software is uniquely flexible and can run projects ranging from simple reverse auctions to complex sourcing events involving goods and services worth billions of dollars, millions of data items and multiple rounds of negotiation. The power of their scenario builder ensures that the decisions you make are based on the best available options, taking into account the objectives and constraints you specify. Questions 15

16 2.0 Consulting Mission Supply Chain For information on this presentation or any other consulting need please contact us at Tel: TradeExtention: Tel Confidentiel document For discussion only 16