What is Transportation Cost Management? A Proven and Measured Approach Reduces Transportation Costs...

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Transcript of What is Transportation Cost Management? A Proven and Measured Approach Reduces Transportation Costs...

Page 1: What is Transportation Cost Management? A Proven and Measured Approach Reduces Transportation Costs (between 8-15% or more) Optimizes choice for low cost.
Page 2: What is Transportation Cost Management? A Proven and Measured Approach Reduces Transportation Costs (between 8-15% or more) Optimizes choice for low cost.

What is Transportation Cost Management?

A Proven and Measured A Proven and Measured ApproachApproach

Reduces Transportation Costs (between 8-15% or Reduces Transportation Costs (between 8-15% or more) more)

Optimizes choice for low cost carrier selection and Optimizes choice for low cost carrier selection and service modesservice modes

Improves Cash Flow (4-8% additional savings) Improves Cash Flow (4-8% additional savings)

Uses detailed analytics to ensure continued savingsUses detailed analytics to ensure continued savings

Page 3: What is Transportation Cost Management? A Proven and Measured Approach Reduces Transportation Costs (between 8-15% or more) Optimizes choice for low cost.

3 Years and $15MM to build proven approach focusing on 4 Key Drivers for Total Cost Management

Developed Contracted Rates with Multiple Carriers utilizing single rate base

Web-based carrier selection tool for lowest cost, best service decisions on each shipment

Recapture lost cash flow with 40 point visual pre-audit/freight payment process

Utilize analytical data to ensure measured success and highlight areas for improvement

Management Reporting

Audit & Freight

Payment

Optimize Carrier

Selection

Volume Discounted

Pricing

TransportationTransportationCostCost

ManagementManagement

Why Capital Transportation Logistics?Why Capital Transportation Logistics?

Page 4: What is Transportation Cost Management? A Proven and Measured Approach Reduces Transportation Costs (between 8-15% or more) Optimizes choice for low cost.

Next Steps to consider:Next Steps to consider:

Determine baseline of current costs (No Cost Analysis)Determine baseline of current costs (No Cost Analysis)

Use volume leverage to negotiate contracted carrier Use volume leverage to negotiate contracted carrier discountsdiscounts

Focus on best choice carriers for your specific transportation Focus on best choice carriers for your specific transportation needsneeds

Perform visual audit to ensure accuracy on all freight bill Perform visual audit to ensure accuracy on all freight bill chargescharges

Use management reports to verify compliance and potential Use management reports to verify compliance and potential opportunities for additional savingsopportunities for additional savings

Page 5: What is Transportation Cost Management? A Proven and Measured Approach Reduces Transportation Costs (between 8-15% or more) Optimizes choice for low cost.

Why move forward immediately?Why move forward immediately?

Assume a $1.0 million dollar annual freight spend

A 12% savings would return $120,000 immediately to your bottom line.

If you wait 1 week to begin implementing you have lost $2,500

If you wait 1 month to begin implementing, you have just lost $10,000

Recover that money today! Let us evaluate 1 months’ worth of your freight bills to demonstrate a proven level of measured savings.