• Case Studies

    Transport Optimisation

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13.5% total cost reduction delivered from a transport improvement program that rationalised the carrier base, improved cost and performance, whilst standardising rates and contract agreements

The Background

  • A large multi-divisional corporate with contract mining operations had undertaken a spend analysis and had identified a significant and largely unmanaged or uncontracted spend in the area of freight and logistics
  • In addition, a significant number of freight suppliers had non-standard invoicing arrangements adding an administrative burden on the organisation

How the Siecap team helped

  • Multi-divisional organisation required base-lining of the existing freight tasks and operations to ensure requirements were documented and understood
  • Requirements were categorised by freight task and customer requirements; industry options were identified and aligned, and business users were trained on how to manage the processes
  • An implementation plan was developed to ensure savings were delivered and the processes were sustained

Results

  • A consolidated carrier base with standard agreements, rate tables and business usage policies
  • Audited annual freight saving of 13.5%
  • Improved transport supplier process compliance
  • Improved chain of responsibility recognition
  • Improved quality standards with a platform for continuous improvement

Case Studies