Management Consulting
Industry:
Mining
Project:
Freight and Transport Analysis
Objective:
To assess current freight, transportation and associated cost with the aim of identifying opportunities to reduce cost and harmonization of cost structures and contracts with 3rd Party providers.
Overview:
Due to the complex nature of the client’s supply chain data from multiple sources/ organisations had to be collated to establish a single data set for analysis. Once compiled the total cost for specific routes and transportation modes was established, providing a base for comparison by each area of interest within the supply chain:
- Warehouse costs
- Road transport from warehouse to port (air/sea) of departure
- Sea/ Air freight charges
Customs and clearing:
- Road transport to port (air/sea) of destination
By incorporating weights and volumes into the data set, current efficiency was benchmarked, identifying the gap between the current and desired efficiency levels. During the analytical processes, common grounds between 3rd party provider’s cost structures and contracts were established. Furthermore, ongoing reporting requirements were established in order to ensure effective implementation and review of the effectiveness of recommendations.
Outcomes:
- ± $1 million of efficiency improvement identified
- Harmonization of Cost Structures and Contracts
Reporting and Key Performance Indicators and Structures Defined