Complex procurement - important cost item
In the era of globalization, logistic chains are becoming more and more complex and international. This will present large challenges for the company’s transport logistics. Due to the expansion of the procurement and sales markets, the worldwide flows of goods will increase and the need for transport services is growing tremendously. This often results in temporary bottlenecks due to reduced freight capacity and transport links as well as price increases. At the same time, the customers wish for more services, transparency, speed, safety, and reliability. That’s why optimal transport logistics is becoming more and more a decisive factor in a company’s success. A professional approach is absolutely necessary for the procurement of transport services, offering a great opportunity at the same time. Freight costs are among the most cost-intensive external services of companies and, on average, have a share of 10 to 15 percent in total sales.
Catalyst Sourcing supports the clients to reduce costs and position themselves safely for the future. Global supply chains are becoming more and more complex; new sites, products, and markets will result in still increasing transport costs also in the future.
The high degree of complexity will lead to a considerable savings potential
Around 80 percent of all European companies pay excessive freight costs. Historical and non- transparent transport networks that have not been optimized for years often are the reason for high inbound and outbound transport costs. High optimization potentials can be found, among others, in non-transparent rate formats and surcharges, poorly utilized transport capacities, decentralized transport decisions, or high costs for express and special tours. Even in the case of a multitude of local transport services or of single sourcing, your freight cost may hide large cost-reducing potentials.