freight-review-case-study

Freight Review Case Study successfully drives down Freight Costs

A Case Study for the Machinery, Mining & Engineering Industry

This freight review case study outlines the major steps undertaken by us here at Freight Controller in helping a valued customerin the Mining Industry to optimise the outcomes of a freight review using our services.

The Australian Head Office of a Global Leader in the Mechanical & Industrial Engineering Industry had become a customer of ours after acquiring a business that was using our FMS system. Impressed with the capabilities of the system being used in their Dandenong South warehouse, they quickly implemented the same system in the other National sites of the larger location. This allowed them to use the system smarts to reduce their freight costs, streamline their warehouse operations, and centrally track their freight.

Having achieved a relationship with them on our freight technology capabilities we expanded the dialogue to include that of our freight management services. We had in fact previously helped the smaller business that they had merged with to save 10% of their freight costs via a Freight Review that we conducted on their behalf.

The National Warehouse Manager of the overall (merged) business had recently conducted a Freight Review prior to our involvement with the two carriers with which they had an historic relationship. The result of this was, they understood from the winning carrier, to be a 10% decrease on moving their freight entirely from the incumbents to this other carrier.  

We suggested that we could review the freight data in order to independently verify the results. This suggestion was accepted. Via our in-house bespoke Freight Tender systems, we established that in fact, based on predictive modelling, the freight costs were forecast to increase if they moved all their freight to the other carrier.

Impressed by our systems and analytical reporting capabilities, the business employed our services to conduct a new Freight Review from scratch on their behalf. The outcome of this data-driven Freight Review was: an annual freight cost savings of approximately 10 %, depending on assumption or approximately $250,000.00 and an improvement on the National Carrier Service provided by opening the business up to new potential carriers that were a perfect match for their freight profile.

Subsequent to the Freight Review (conducted in 2018) we have since then set up a National Carrier Invoice / Consignment Reconciliation Service that ensures they only pay what they should. This service (a part of our Carrier Check solution) feeds through to our Business Intelligence platform; to our Freight Cost & Activity Interactive Dashboard, that further helps the customer with optimising their freight.

Regularly the National Warehouse Manager or Customer Service Manager contacts us to discuss the latest spend with a particular National customer and finds the data to be a fantastic tool to understand exactly what is happening within the freight budget.

A further reporting project was conducted to set up a customised, daily freight recovery report so that freight expenditure for certain consignments was claimed back via the company’s invoices. This reporting service is estimated to be worth an additional $400,000 per annum in recovered freight over what was previously in place.

Freight Controller continues to work closely with the Mechanical & Industrial Engineering business to ensure that their freight management processes are optimised for their individual requirements as they evolve over time.  If you would like to see how the types of solutions outlined in this freight review case study might assist your business, please contact us for a free consultation.

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