Transportation Sourcing

Are your carrier costs creeping up every quarter? Have you noticed fuel surcharges are on the rise? How do you curtail cost in an industry undergoing so much change?

Transportation is a volatile industry riddled with heavy competition, tight capacity, and soaring fuel prices. This has created a lot of anxiety in the marketplace. For buyers of transportation, these factors have also created opportunities as companies strive to maximize savings across various transportation modes, including truckload, intermodal, LTL, airfreight and rail. Each of these modes has varying levels of complexity; however, the key drivers of successful transportation sourcing and supply chain management revolve around cutting costs while maintaining critical service levels. What's the answer?

• Robust lane-level baseline data and advanced analytical capabilities.
  

Do you really know how much you're spending in transportation?

Many companies operate in a decentralized environment leaving transportation decisions up to individual plants and warehouses.

While this strategy is good for individual business unit P & L, total transportation performance suffers due to it's fragmentation, instability and conflicting objectives with corporate strategy.

After all, how can a VP direct his business units to reduce their overall costs when they cannot take advantage of economies of scale? Is the warehouse in Dallas moving freight to Chicago the same day El Paso is moving some LTL? Even centralized organizations are challenged, lacking the tools to accurately manage complex transit activities across a number of different modal landscapes.

Like any other commodity, transportation providers rely on volume and frequency to reduce their operating costs. You could be eligible for discounted transportation.... but do you have your data together?

TMG's Transportation Sourcing Methodology and supply chain management lowers your transportation costs and improves service by helping you understand your network and find the best mix of carriers, 3PLs, lanes and rates for your business.

We use spend analysis and constraint-based optimization to analyze your mix of carriers, routes, and service levels. You need this to reduce cost and improve service not only in targeted problem areas but across the entire business enterprise.

When you use TMG's Transportation Sourcing Methodology, your optimized results act as a routing guide so you know at a glance who your primary carriers are, maximizing precious time, to get field compliance and get equipment.

Transportation Procurement

TMG Transportation Sourcing and supply chain management provides the following benefits:

• Reduces your transportation expenses by optimizing carrier selection for your global inbound and outbound transportation needs
• Provides ongoing savings by giving you the data necessary to negotiate long-term carrier contracts based on your optimized carrier selections
• Decreases administrative overhead in preparing and distributing RFPs and requests for spot quotes
• Cuts analysis time by eliminating manual rate comparison across multiple rate structures

Transportation Consulting by TMG

TMG Transportation Sourcing Methodology includes:

• Transportation RFP - Streamline sourcing with sophisticated workflow and electronic communications that standardize processes and data between your enterprise and service providers.
• Define your operational and accessorial requirements, upload historical files, and invite selected carriers to bid on your RFP.
• Carrier Bid Optimization - We help identify the best carrier service and rate combinations
• Rate Benchmarking - With rate benchmarking, you can compare your existing rates with the market rates that everyone else in your industry is current paying.