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Improvement of transport costs and service

April 06, 2016 214 Views

Description
Fellowes is a provider of office accessories, business machines and computer accessories.

Opportunities
Since service is significant part of their product offerings, Fellowes constantly focuses on improving their supply chain performance. For the European distribution center in Breda, a European transport study was conducted. Based on the outcome of the European transport study (carrier pre-selection), Groenewout prioritized transport costs and services to be improved. It was jointly determined that France would be the start of the improvement program.

Solution
Groenewout performed the tendering process for transport of pallets and parcels to France. The activities executed were as follows:

  • Determination of short list
  • Request for Quotation <
  • Review & evaluation of received quotations
  • Ranking of carriers
  • Service level test.

Based on a weighted factor analysis the preferred transport company was identified.

Benefits

  • Eight transport regions in Europe were defined as areas to improve transport costs and service
  • Costs savings and service improvements were defined for each areas
  • Advise on selection of best transport companies for distribution to France that resulted in 13% costs savings on pallet distribution to France and considerable service improvement.