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Automotive Procurement Success Study

Optimizing Multi-Modal Transport Spend

€120M in freight spend, with a lack of transparency across ocean, air, and parcel logistics. 34 targeted initiatives delivered a sustainable reduction in logistics costs.

Customer

Automotive

10M - 50M Annual Turnover

500 - 1.000 Employees

The Challenge

An international automotive supplier with €120M in annual freight spend faced a lack of transparency across ocean, air, and parcel logistics. Inefficient container utilization and a fragmented carrier base resulted in above-market rates and inconsistent transit times.

Our Approach

As part of a 14-month transformation project, we implemented 34 targeted sourcing initiatives built on three pillars:

  1. Strategic Tendering: Introduced advanced eTender tools to enable fact-based, transparent negotiations with a consolidated carrier base.
  2. Modal Shift & Selection: Developed a bespoke tool for automated, per-shipment selection of transport mode (ocean vs. air freight) to optimize cost.
  3. Inbound Consolidation: Implemented inbound supplier consolidation and optimized container fill rates to reduce the total number of shipments.

Results

€13M

in annual savings

Achieved an 11% year-on-year reduction in total logistics cost.

Increased

scalability

Successfully reviewed and restructured the carrier network for long-term scalability.

Elimination

of spot buying

Replaced tactical spot-buying with strategic partnerships, securing capacity even in volatile markets.

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