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e-sourcing global ocean tender management solution

Client: A US-headquartered global producer of technology products

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Background

  • A US-headquartered global producer of technology products and its subsidiaries have global supply chains and export their products worldwide, serving several industries.
  • The company’s previous ocean contracts covering its extensive transport needs for Full Container Load, Less-than-Container Load and out-of-gauge, were due to expire soon.
  • The company selected Drewry to manage its 2016 global ocean tender, using innovative features, the latest technology and freight cost benchmarking through Drewry’s e-Sourcing Ocean Freight Solution (eSOFS).

 

The client

  • The company ships products by ocean transport on about 4,000 lanes and negotiates with 50+ providers globally for its approximate 50,000teu annual volume. Its annual spend on ocean transport runs into tens of millions of dollars.

 

Objectives

  • The company wanted to reduce its ocean transport spend without compromising quality of service.
    As the logistics departments of several of its subsidiaries had good relationships with a number of incumbent carriers and forwarders, the subsidiaries had to be informed of and involved in the final selection of providers.

 

Drewry Approach

  • Drewry ran the global tender using advanced electronic tools and optimisation scenarios to identify cost reduction opportunities and the best selection of providers given the company’s objectives.
  • Drewry recommended that all providers first complete an online Request for Information questionnaire, to ensure compliance with the company’s policies and requirements.
  • Drewry pre-mapped the customer’s agreed scenarios in the Keelvar sourcing tool.
    Drewry identified additional, high-quality bidders and provided feedback and replies to bidders from the US, Asia and Europe during the tender, ensuring a high level of participation.
  • Drewry checked and questioned incorrect bid data from the providers.
  • Drewry joined and supported 3rd-round face-to-face negotiations with key providers at the company’s US headquarters.

 

Result achieved

  • The company secured a multi-million-dollar reduction in annual ocean freight costs under the new ocean contracts, while keeping many of its preferred incumbent providers.
  • The global tender was completed in less than 3 months.
  • Drewry documented and provided in a single file a clear statement of costs, charges and cost models for all the lanes of the company and its subsidiaries.

 

"We engaged Drewry to provide advisory RFI/RFQ services for our group’s large and complex Ocean Freight Global Procurement Event. Drewry have met our requirements and provided a high level of expertise, advanced analytics and responsive communication with all parties, under tight deadlines. As a result, we were able to obtain improved contractual terms and services from ocean providers,” Vice President , Indirect procurement

 

Key Contacts

Philip Damas

Philip Damas

Director, Head Supply Chain Advisors

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