eth-ep starteo ofcurement in the logistics industry · pdf filein the logistics industry as...
TRANSCRIPT
Theheavyliftingisnowdoneforyou!Automatedcalculation,Excelfunctions,
scenariobuildingandreportingprocessedwithinseconds.
Cloud-basedcommunicationanddocumentationmanagementcanreduce
thetimespentonafreighttenderwith70%
PlantoadoptProcurementTechnology
4ProcurementpainpointsthatTechnologycanaddressin2017
ANALYTICS&REPORTING
CLOUDCOMMUNICATION
34%Ofsurveyrespondentshavenoplanstoautomatetransportationprocurementpractices.
Planstoadopttechnologywithinthenext12month.
8%
TheStateof
E-PROCUREMENTIntheLogisticsIndustry
Assuch,logisticsconsultantscanbemorefocusedattheclientsandthecarriersduringthe
tenderandofferingmorevaluebasedontheir
knowledge,experienceandskillsthandoingworkthatshouldbeautomated.
NolongeryouaremanagingyourcarriersviaconfusingExcelsheetsandyourinbox.Onecentral
flowinsidethecloudallowsyoutomanageyour
carriersreal-time.Dedicateyourtimetothingsthat
reallymatter!
TheStateofProcurementTechnologyadoptionDespiteaclearunderstandingofthepowerofprocurementtools,shippershave
stillnotadoptedfreightsourcingtechnologyonalargescale.Infact,manycompaniesarestillrelyingonamanualorspreadsheet-basedapproachtotransportationprocurement.Lessthan10%ofshippersuseadedicatedfreightprocurementtoolforalltransportationbuyingactivityandmodes.
Thevastmajorityofthemarketstilldoesnotmakeuseoftransportation-specificprocurementsolutions
Planstoadopttechnologywithinthenext12-24month.
11%
Adoptioninthe5year'scompanyplan.
5%
37%Ofsurveyrespondentsareuncertainabouttheadoptionoftechnology
Theheavyfocusonexceltemplates,excelmacro’swhichstartstolooklikehobbying.Maybefreightbuyingisnotsohardafterallandtendermanagersshouldfocusmoreonhavingclearpartnersinsteadofdiggingdeepintoexcelinordertofindhiddenpricingpatternsthatwillrevealtheholygrailandmassivesavings.
Poorfocusoncommunicationwithcarriers.Explainingwhatthetenderisabout,whattheobjectivesare,personalcontactwiththecarriers,helpingthemthroughouttheprocess,givingproperfeedbacketc.Itisallnotdoneoronaverylimitedscale.Nowonderinmosttendersnotmorethan50%ofthecarriersactuallytakepart.Thisisanareaforenormousimprovement.
Tendersareoftenmanagedbypeoplewhoarenotwellequippedtodosobecausetheyjustdon’thavetherightskillsetorknowledgeortheydoitonlyonanirregularbasis.Inthiscase,getaconsultanttohelpyouorgettrytomaketheprocessandthetenderasstraightforwardaspossible.
Communication
ExtremefocusonyourowninternalRFPprocessandjustexpectingthateverybodyshouldandwillfollowtheirprocess.Youarenotadaptinginanywaytowhatworksforcarriersbutjustdemandingtheyfollowyourofteninconvenientfill-inexercise,notallcarriersmaybeequippedtodothisinthebestwayandwilleitherparticipatepoorlyornotatall.
BarriersofProcurementTechnologyadoption
Excellimitations
Limitedskills Collaboration
2016
Shipper 3PL
Lacksreturnoninvestment
Currentsystemorprocessmeetsourneeds
Organizationalresistancetochange
Availablesystemsdonotprovidethefunctionalitywerequire
Wedonothavethetechnicalexpertisetomakeachange
Thestrongestfactorskeepingcompaniesfrominvestinginprocurementtechnologyareaperceivedlackofreturnoninvestmentforshippers,andabeliefthatthecurrentsystemmeetsexistingneedsontheLSPside.Nearly20%ofthemarketremainsconvincedthatcurrentsystemsdon’tofferthefunctionstheyneed.
WhereProcurementTechnologyisneededNearlytwo-thirdsofretailersbelievetransportationplaysacriticalpartintheir
companies’omnichannelstrategy.In2016,75%ofmanufacturerssaidoceanfreightprocurementismoretechnology-driven,comparedto24%lastyear,while65%saidairfreightismoretechnology-drivencomparedto49%in2015.
Thebigpro'sofdedicatedFreightProcurementSolutions
CarriersnowadaysareusedtoreceivingfreightRFQ'sfrom
automatedprocurementsolutions.
Formerly,(older)procurementtoolswereseenasunfavorablebecausetheywerenotalignedwiththe
importanceoftheshipper-carrierrelationship.
Movingfromapurespreadsheet/emailapproachtoonewheretheRFQis
submittedelectronicallyandbiduponbycarriersisnowseenasbestpracticefor
shippersandLSP's.
www.tendertool.comITheonlyindependentfreightsourcingplatformIinfo@tendertool.com
BenchmarkfreightratesScorecardfreightcarriers
Trackservicelevelparameters
Source:AnalogStrategiesinanOmnichannelWorldTransportation
ProcurementBenchmarkStudyAmericanShipper’sTransportationProcure-to-PayBenchmarkSeries
Companiesarevulnerableiftheydon't
50%surveyedwereneutralordidn’tknowanythingaboutexistingtools.Thissuggeststhatthemarketiseitherunawareoruninformedabouttheglobalcapabilityoffreightprocurementtechnologyproviders.
CapabilityofcurrentProcurementtoolsforglobalLogistics