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.
![](https://wisdom-site-prologicalconsulting-com-au.s3.amazonaws.com/uploads/2022/09/Cost-savings.jpg)
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:
- Current-state review
- Design & segmentation of the freight task
- Market engagement process
- Qualitative and quantitative tender response evaluation
- Supporting the implementation of the agreed solution
![](https://wisdom-site-prologicalconsulting-com-au.s3.amazonaws.com/uploads/2022/08/Freight-optimisation-graph-1024x584.jpg)
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.