Transportation Optimization Programs

Save a typical shipper 5-15% of total spend YOY with a typical ROI of 20x based on average savings and average cost of engagement.

• Best-in-class RFP process.
• Maximize the potential savings of the RFP/direction negotiation process.
• Trax will provide RFP templates, rate template standards, and manage an optimal RFP execution plan.

Gain insight into the “health” of a contract relative to current market conditions and your historical shipping profile for the
associated services.

• Reviews contractual term/conditions, and pricing for FedEx, UPS, and DHL
• Evaluate the benefits of a full RFP or as an alternative, a contract extension.

Implementing the proper level of compliance, both financial and non-financial, on suppliers will reduce the overall cost of inbound transportation and maximize the savings potential of any inbound transportation logistics program.

• Determine viability of charge backs, and an overview of the inbound network
• Moving from pre-pay and add to inbound collect, typically results in upwards of 10% savings
• Improve discounts associated with transportation rates and related services.

We’ll assess your current transportation management spend challenges and provide a roadmap incorporating a phased approach that ensures your benefits exceed your investments every step of the way.

• Issue rfp like bids for new rates, evaluate responses, what-if model responses
• Data-based decision making
• Accept bids on rates, both spot and contractual

A well-managed, optimized routing guide can reduce non-compliant shipping and result in a savings of 2-5% within a mode of transport.

• Non-compliant shipping typically costs more and can create variance to planned optimal execution
• Ensure both suppliers and internal execution platforms are using the right mode, carrier and service for distinct requirements

Establishing the optimal location for a new shipping facility within the network is a daunting task. Trax Advisory can assist with assessing the transportation logistics cost of a) a potential shift from a current location to an alternate location or b) review the network and make recommendations where shift opportunities could occur to reduce distance between origin and destination points.

• Savings of an optimized network can net 5-12% savings
• Inventory replenishment costs will also be discussed and factored into the modeling if necessary
• Validation of all recommended strategies prior to actual implementation

Depending on the current state and the amount of variance between ship weight and bill weight, reducing the billable weight will typically result in a savings range of 2-3% of spend within the mode category.

• Reduce dimensional weight impacts for both parcel and air freight

Reducing the occurrence of avoidable accessorial charges by changing execution strategy or negotiating a better rate will reduce the overall spend attributable to accessorial surcharges and thus reduce the average total cost per shipment or per unit weight.

• 1-2% spend savings within the category
• Reduce the overall spend attributable to accessorial surcharges

Consolidating LTL shipments and possibly utilizing FTL as a mode shift will reduce the cost per unit weight and ultimately reduce the overall spend in the category.

• Identify opportunities where multiple LTL shipments were tendered on the same day for the same lane (origin/destination pair).
• Alternative execution strategies model based on single/multi-day consolidation.

Zone skipping or pool distribution execution strategies can result in a range of savings between 2-3% of spend within the category.

• Analyze shipping zones based on various shipping points in the client network
• Analysis of direct DC to Store shipping patterns
• Lower overall average cost per shipment or cost per unit weight

For cases where no other service meets the requirement, Trax Advisory will build a specific data model to forecast impacted change based on various input parameters and a historical data baseline. The scope of the modeling will be client-defined and documented in the statement of work.

• Predictive models are valuable tools for determining if a proposed change or set of changes will result in the desired outcome.
• Collaborative approach to determine predictive modelling requirements

While it is not possible to tie better visibility to a range of savings, inevitably, better analytics will empower an organization to become more efficient and strategic in hold challenges are managed and strategies are validated.

• While Trax provides both standard and custom reporting capabilities as part of the TTSM platform, Trax Advisory can engage to develop a customized metrics
  strategy using a KPI driven methodology and custom visualizations.