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Automotive Freight Optimisation

Improving service to dealers, DIFOT and freight expenditure

Automotive distributor

Optimising insourced partner management

Following a decision to insource responsibility for ownership and management of freight partner(s), Prological was engaged to support our client in a freight optimisation project. The aim was to significantly reduce costs and provide new service options, including:

  • better service to dealers and improved DIFOT
  • decreasing air freight through improved land-based options
  • increasing packing density
  • reduction in road and air freight expenditure.

Holistic qualitative and quantitative review

Our holistic approach allows us to identify the maximum available opportunities within your distribution activity to reduce expenditure, unlock service improvements and build a competitive advantage:

  1. Current-state review
  2. Design & segmentation of the freight task
  3. Market engagement process
  4. Qualitative and quantitative tender response evaluation
  5. Supporting the implementation of the agreed solution

System and process redefinition

As a result of the freight optimisation process, Prological was able to identify immediate operational and system changes to consolidate orders, significantly reducing the frequency of unnecessary basic charges and saving approximately $400k p.a.

Savings opportunities of at least $350k per annum were also accessible without compromising service levels.

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