Process

Transportation is usually 40-60% of logistics costs and is generally largest single component.  Transportation strategies also enable the Distribution Network Design from above but, need to be at an executable level.

• Transportation Modeling
  • Blue printed design strategy
  • Service level definition
  • Mode optimization
• Transportation Consulting
  • Carrier selection and negotiations
  • Performance management tools 

Value

Potential reduction of 10%-15% of Transportation costs.

• Assume annual sales of $1 billion
• Transportation costs are 40-60% of logistics cost or $32 to $48 million
• Annual savings of $3 to $7 million

Go forward plan on the management of your carrier base and selection criteria to make future selections.