Key challenges
The client deals with the complexity of managing deliveries to major retail, independent food chains, and gourmet businesses.
The primary challenge lies in effectively overseeing and optimizing freight carriers’ performance, a struggle intensified by the lack of control within the logistics network.
Our approach
TMX was engaged by the client to lead a national freight RFP process, which included:
- Implementing a share fee structure, achieving substantial savings, and quality improvements for the client.
- Negotiating favorable payment terms, providing cash flow benefits and financial flexibility.
- Defining Service Level Agreements (SLAs) and Key Performance Indicators (KPIs) for freight operations.
- Conducting thorough benchmarking of freight operations to identify opportunities for cost reduction.
The results
Combining our freight procurement expertise and process improvement initiatives, the project generated annual savings of ~AUD $2.0M (21%).
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