3. Freight Cost and Transit Times

A manufacturer was spending over £15,000.00 a month on freight costs, for indirect services. Transit times, door to door, were taking over a week on major routes. The company needed to make changes and considerable savings.

My first task was to assess the lanes and volumes and document this. I set about creating an RFQ (Request for Quote) to various forwarders that they currently use and new companies with my experience in the freight forwarding industry. Having meetings with the forwarder’s sales executives, based on the quote, transit times and communication/value of service, I was able to find the right forwarder to handle the company’s goods. I had a meeting with the company’s Directors and Vice Presidents and presented my nomination to them and why I thought they would be the best fit for the company. Once approved, I negotiated the SOP (Standard Operating Procedure) together with the legal department on how I would like the freight moved from door to door and what communication and documents were needed.

Once the SOP was signed off by both parties, the company were able to save over £100,000.00 in freight costs within their 1st year on a direct service, whilst cutting transit times to 3-4 days in most lanes.


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