Electrical Goods National Freight Review

Parallel workstream projects encompassing baseline freight reporting, freight KPI reporting dashboards, Standardised Service Agreements, cost and service optimisation opportunities.

Electrical Goods Retailer

Ethical balancing of costs and commitments

Our client is an international home appliance manufacturer with Australian revenue of $800m and freight costs of $21m.

Their main motivation was to understand the current national freight spend for the client and design a sustainable, fair and ethical cost and service model for all contractors. Additionally, it was to identify potential cost and service improvement opportunities for each state/geography.

Parallel workstream process

In order to make real the opportunities available to our client, the Prological team proposed to work on parallel workstreams including: Baseline freight report; Freight KPI reporting dashboard; Standardised Service Agreement / charging structure; Cost and Service Opportunities.

Each workstream followed our holistic approach including redesign, engagement, evaluation and implementation.

Compelling improvements

To meet the brief Prological delivered the following key outputs:

  • an accurate and detailed baseline of current freight activity, costs and service
  • a strong understanding of the current processes, customer behaviour, order profiles, geographic understandings, kms, cost-to-serve at order level (by geography/region if possible) and vehicle/fleet utilisation by geography
  • key performance metrics to monitor costs and activity by geography and driver
  • map of client’s data sources to calculate KPIs
  • an overview of potential optimisation opportunities relating to:
    • current operations and fleet configuration
    • outsourcing some freight tasks
  • insights to enable evidence-based decisions on the cost and service implications of a number of freight strategies.