• Insights Process Optimisation
    Package prices are good, nothing more is possible! Right?

    Large discounts on parcel prices were given by the five leading CEP service providers. There isn't much to be gained from bundling either. So it is worth taking a look at the process costs. How does the process run from commissioning to delivery of the goods? How is the invoicing done? Are the discount scales appropriate for the shipments?

CHALLENGE

Generating savings although the conditions were excellent

The worldwide shipment of small parts is handled by five service providers. The majority of the shipments are packed in several parcels. Ordering and tracking is done per parcel. This is often a significant additional expense due to the fact that there are often several parcels per shipment!

Also, invoicing is done per parcel. The graduation of prices is not adapted to the weight class structure. 

Each service provider is ordred in a different way. Tracking of the parcels is not integrated and only takes place in the systems of the service providers. The billing process is not completely automated. 

 

This gives enough opportunities to generate savings.

However, these cannot be realised without a precise analysis of the data.

 

HANSBECKER SERVICE

Process Optimisation
Cost Reduction

ANALYSIS

#FACTS

  • 550.000 € Purchasing volume p.a. 
  • 2 locations
  • 155.000 parcels worldwide
  • 5 service provider
  • Non-standardised order process billed per parcel

#HANSBECKER SERVICE:​​​​

  • Collcting Data of shipment statistics
  • Merging various statistics
  • Analysing shipment flows, weight classes, number of parcels 
  • Analysing the tariff structures of the 5 DL
  • Analysing the order, tracking and billing process

CONCEPT

#FACTS:

  •  Shipments as a basis for billing
  • Integrated IT for order picking, track & trace
  • Pooling of volumes with fewer service provider 

#HANSBECKER SERVICE:

  • Classification of the graduation in relevant weight classes per shipment.
  • RFQ based on this structure
  • Evaluation per country / region
  • Pre-selection of appropriate service provider to connect data streams

REALISATION

#FACTS:

  • Assignment for 2 service providers
  • Integration of IT system (Track & Trace)

#HANSBECKER SERVICES:

  • Bidder interviews
  • Support of the technical implementation
  • Freight calculator for the control of the invoices by shipment

RESULTS

 

  • Optimised processes
  • Annual savings of € 56,600 in terms of conditions per shipment
  • Savings in process costs 15.000 € p.a. 
  • Reliable processes Track & Trace

" Developing a demand-based billing model from the accumulated shipment statistics generates unexpected potential for the customer."

Sören Seewald

Senior Expert Logistics Hans Becker GmbH