Optimize logistics & warehouse management

Optimization of your outbound logistics

By optimizing your outbound logistics, you ensure the competitiveness of your company. Fast delivery times and reliable deliveries are relevant characteristics of optimal outbound logistics and lead to an effective increase in customer satisfaction. You also benefit from greater cost efficiency, as successful tenders and make-or-buy analyses minimize costs and increase capacity utilization on various transport routes. Optimized outbound logistics also helps to reduce emissions through efficient route planning and transport optimization.

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Portrait of young worker leaning on pallet jack at warehouse

Table of contents

01

What are the challenges?

Outbound logistics is increasingly facing challenges that can have a significant impact on a company’s success. As a result, optimization in this area is crucial for effective competitiveness and successful transport quality. Potential challenges that arise are

  • Price increases due to
    • volatile pallet costs
    • Freight costs (e.g. due to driver shortage)
    • Diesel & energy costs
  • Significant outbound volume changes/shifts: These are prioritized by the loss of customers or the delivery to new customers or customer locations. Due to this change, a redistribution of volumes to service providers is necessary (for example, if no additional volumes can be handled by existing service providers)
  • Changed customer requirements that cannot be fulfilled by the existing service provider, e.g.
    • delivery times
    • response times etc.
  • Insufficient delivery performance from existing service providers
Supervisor standing by a whiteboard with a digital tablet discussing dispatch plan with workers. Team of workers having meeting in a distribution warehouse.

What advantages do you gain from a well thought-out supply chain strategy?

Profit increase

Our transport and logistics tenders usually lead to significant savings, often in the double-digit percentage range.

Flexibility

By identifying new, high-performance suppliers and redistributing volumes in terms of flexibility, tenders in the transportation sector can significantly increase flexibility. In addition, fixed costs can be replaced by variable costs as part of outsourcing.

Full transparency

Tenders enable you to obtain comprehensive information on current market prices and volume flows. At best, you even have precise knowledge of the various cost components, such as transportation price, personnel share, etc.

Improved delivery performance & customer satisfaction

Tenders are used to find optimal alternative service providers with whom a service level agreement (SLA) is concluded. This increases delivery performance and ensures customer satisfaction.

How we can support you

The optimization of outbound logistics takes place in five phases:

  1. 1

    As-is analysis & concept development

    In the first phase of the project, the focus is on the analysis of current transport contracts based on the documents & results of past tenders. In addition, a logistics spend cube is designed on the basis of a transport volume analysis to build up the quantity structure and evaluate quantity flows. The requirements and restrictions of transport logistics are then recorded and cost transparency is created. A baseline is designed on the basis of this.

  2. 2

    Preselection

    In the pre-selection phase, a long list and a supplier self-assessment are prepared for shipping. The latter should prioritize the size of the company (e.g. based on turnover, employees, vehicles, etc.), the locations and the credit check (e.g. Creditreform, etc.).

  3. 3

    Invitation to tender

    Before the invitation to tender is issued, the tender documents are coordinated in an intensive workshop and the service provider shortlist is discussed. Other focal points of this phase are the implementation of the tender and obtaining offers. This process includes both efficient tender management and responding to queries. In the final step, the offers are evaluated and an optimally suited service provider is selected for negotiations. Subsequently, dates for future rounds of negotiations are discussed.

  4. 4

    Final negotiation

    In the final negotiation phase, we focus on defining contract components and operational specifications for the service provider. The condition negotiations are prepared and planned together with the selected transport service provider. After the negotiation round, the offers are evaluated, a recommendation is identified & savings calculations are carried out for the award decision.

  5. 5

    Implementation

    The implementation of the concept relates in particular to the implementation of the newly developed structures and the signing of transport contracts. If necessary, the transport service providers will be changed.

Would you like to find out more about supply chain management?

Would you like to find out more about supply chain management?

Get in touch with us!

Your contact persons

Gereon Küpper, valantic

Gereon Küpper

Partner

valantic

+49 211 56 38 75 - 42

  • Supply chain optimization
  • Chemical industry
  • Digitalization
  • Software selection
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Dennis Goetjes

Dennis Goetjes

Partner

valantic

+49 211 563875-50

  • Supply Chain Management
  • Sales & Operations Planning
  • Supply Chain Configuration
  • SCM-Organisations
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