iProcurement
iProcurement-services

iProcurement is a specialized procurement tool based on the realistic needs of transportation management professionals.


Offered to our customers as a combined software and service solution, our team works with the client to establish the key project goals and objectives, establishes the selected transportation provider base for the procurement exercise, and builds every project to the specific needs of our partner.


iProcurement is supported by powerful web-based software to provide an easy-to-use interface with transportation providers in the course of the bidding process, an experienced multilingual team, and powerful analysis tools to assist the client in making the final selection of transportation providers based on the best information obtained from the procurement event.


Business Case

Situation

  • The world’s largest pork exporter was notified by transportation providers that they were paying above market rates for refrigerated Full Truck Load (FTL) rates.

  • With potential savings to be had, Executive Management mandated a decrease in the number of suppliers and a decrease in expenses.

  • There were 5 plants in separate countries exporting goods to all of Europe and each plant had their own choice for transportation providers.

  • Already short-staffed, our customer's last FTL Tender project for European transportation providers took six months, countless man hours, and tremendous coordination efforts across all locations. Needless to say, they were hesitant to outsource the tender because they believed it would be cost-prohibitive.

  • Their goals were to complete the tender process within 60 days, decrease their transportation provider base by 40% and ultimately reduce their FTL freight costs.

Solution

  • nVision Global and the customer developed a procurement strategy that encompassed the regional issues (different ERP platforms, transportation who were not EDI compatible, transportation provider performance history, etc.) with the corporate goals to decrease suppliers and find savings.

  • nVision Global managed the entire tender process, except for provider selection and final negotiations.

  • nVision Global built a custom tender template to ensure that providers' bids were submitted in a controlled bid form that could not be manipulated. This let the client consider a fair comparison between all transportation providers.

  • Utilzing the client's bid parameters, we ensured that only ‘vetted’ transportation providers were considered in final negotiations.

Results

  • The FTL Tender was completed in less than 60 days

  • We reduced the approved carrier base by more than 50%.

  • Utilizing nVision Global's Procurement analysis tool, our client was able to negotiate from a position of strength because they had the entire bid ranking organized in a manner that they could easily pit transportation providers and their service offerings against each other by lane or region.

  • Additional savings were achieved utilizing the transportation provider combination analysis, which breaks down the lowest cost by using multiple providers to service a region or country.

  • The result of the procurement tender process was an 8% savings (2, 000,0000+ Euro) on total European FTL spend.