Cases
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Reduce Transportation Costs in Europe.
Company profile
- World leader of serving supplies for Airlines
- Nett sales of €200 million.
- Manufacturing sites on 3 continents.
Company challenge
- Reduce transportation costs.
- Facilitate administrative tasks around transport, from booking shipments to checking suppliers’ invoice.
Our challenge
- Propose and install a centralized transportation department, where those tasks were done by customer service.
- Update working methods.
- Create alternatives to the monopolistic situation of suppliers.
- Installing a tool allowing comparison between suppliers conditions, and a facilitated invoice check procedure by creating accruals in the accounting system.
Our approach
- Using our transportation costs benchmark in order to define potential reductions
- Negotiate renewed rates with existing suppliers and/or introduce more competitive partners.
- Install our PHIRATER tool and customize it in function of the existing ERP system requirements.
The results
- Transportation costs have been reduced by 12% at short term, with a longer term objective of 20%.
- Installed alternative suppliers, in order to keep service level and costs at optimum.
- Administrative tasks around transport are now simplified.
