Furthermore, many companies do not have a dedicated resource to manage the freight procurement process, resulting in usa
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Managed Procurement Services
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With MPS companies can: •
Optimize transportation and spend across lanes, carriers and modes
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Identify which lanes and carriers represent the greatest opportunity for improvement
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Increase efficiency of the transportation sourcing process
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Compare carriers and lanes without disrupting current workflow
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Benchmark rates and service levels against industry metrics
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Centralize bid data
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Balance carrier awards with business objectives beyond cost-savings (capacity, environmental, diversity and other goals)
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Achieve quicker return on investment in the RFP/procurement event process with faster RFP preparation
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Leverage the transportation procurement process through monitoring new carriers and routes
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Rationalize carrier base or cast wider net as needed to meet strategic transportation goals
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Gain the ability to respond faster to changing transportation needs
Challenge Transportation sourcing can be a significant challenge for many companies. Typically the procurement process to identify potential new carriers requires a major investment of time and resources. In addition, the transportation team must develop a request for proposal (RFP), follow up on carrier responses, evaluate multiple award scenarios, and implement new carriers into the mix. Furthermore, many companies do not have a dedicated resource to manage the freight procurement process, resulting in usage of key personnel from other areas to complete the sourcing event. This is disruptive to current operations, and prevents the development of functional expertise to drive continuous improvement in the transportation network. Lack of carrier profile data, vetted capabilities and industry benchmarks are also common issues for many companies. Without comparative data points, companies do not know if carriers are costing too much or if lanes are inefficient. Capacity can become an issue but it remains unclear if that is due to the current carrier’s inefficiencies or if more carriers are required to meet demand. It takes transportation procurement skills, knowledge of existing carrier capabilities, insight into carrier coverage, and supply chain expertise to optimize a company’s transportation investment.
Solution Managed Procurement Services (MPS) from LeanLogistics provides transportation sourcing expertise, industry benchmarks and innovative technology to more efficiently and effectively handle transportation procurement. The process begins with a holistic review of a company’s lanes and rates to determine which need attention. By comparing performance internally against external industry benchmarks, LeanLogistics focuses in on out-of-tolerance conditions, identifies new carrier opportunities and discovers strategic cost and service improvement opportunities.
LeanLogistics 1351 S. Waverly Road Holland, MI 49423 www.leanlogistics.com P 866.584.7280 A Kewill Company
Once a company’s current performance is analyzed, a transportation procurement project plan is created. With visibility to more than 14 million shipments annually representing $7B in transportation spend through the LeanLogistics Transportation Network; MPS easily identifies lanes where load destinations match the company’s origins with high frequency to make
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the best selection. And since carriers are already within the LeanLogistics Transportation Network, MPS provides assurance that the carriers are competitively priced and qualified. “Northwest Pipe utilized Managed Procurement Services because of positive results we’ve had with other LeanLogistics Service offerings. We’ve seen significant time and cost savings with MPS and will continue to leverage MPS in other areas of our business.” Corporate Logistics Manager, Northwest Pipe Company
With this advanced transportation sourcing technology, companies make final award decisions and manage final contract documents and other important terms in a professional, organized, easily-accessible place. And it doesn’t stop at the end of the initial procurement event. MPS provides continual process improvement suggestions as new carriers are selected and add new routes enabling more efficient and repeatable transportation procurement cycles. Furthermore, MPS offers critical post RFP support so companies can effectively manage closed-loop spend. The goal is to ensure companies fully realize the results of the final award scenario from a cost and performance standpoint.
Results In addition to unlocking savings, transparency into carrier routes and pricing creates healthy competition between carriers, which equals secured capacity, committed service levels, and rates aligned with markets. This shift from a manual to automated process may save companies up to 80% of their typical transportation procurement event costs. MPS offers the fast realization of awarded rate reductions, introductions to new carriers and best-in-class cost performance across all lanes.
Features •
Experienced team of transportation procurement professionals
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Innovative technology to enable more well-informed carrier and lane/route choices
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Automated award process and document storage
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Configurable lane and rate bundling options
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Awarding carriers based on multi-constraints beyond rates like environmental certifications, safety records, diversity stance, etc.
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Conditional and expressive bid options for carriers
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Spans procurement of TL, LTL, ocean, intermodal and rail modes
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Introduction to new carriers through the LeanLogistics Transportation Network
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Ease of use for carriers and shippers through an easy to use web-based application
LeanLogistics 1351 S. Waverly Road Holland, MI 49423 www.leanlogistics.com P 866.584.7280 A Kewill Company
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