Digitalizing spot rates for efficiency and cost savings
By unifying an opaque and highly manual process for spot rates, a leading global electrical equipment manufacturer reduced costs by nearly one-fifth while reducing workforce requirements.
An opaque and time-consuming RFQ process for spot rates was impeding cost reduction and eating up internal resources
Our client’s Asia-based transport and logistics desk was overseeing international and domestic transportation for 35 countries, obtaining spot rates from 12 local and regional logistics service providers (LSPs) for every shipment.
This completely manual process involved creating RFQs for every single shipment in a spreadsheet and manually sharing them with all LSPs. Once quotes were received, they were compared manually and shipments were awarded to the selected lowest bidder via email.
This process was slow and highly inefficient, consuming internal resources. Furthermore, because LSP selection was opaque, no material cost savings were achieved.
Digitalizing and streamlining the bidding process
- Efficient logistics requests: Manual RFQ processes were replaced by e2log’s logistics requests, which allowed cloning to be deployed for repetitive movements on the same trade lane.
- Data-driven decisions: Every LSP bid was received via e2log, enabling shipment cost and duration to be contextualized for each bid received. Reverse auctions were used to help further lower prices.
- Workflow management: The workflow tool in e2log ensured that relevant internal approvals were obtained as needed, before awarding shipments to LSPs.
Increased transparency drove real cost savings and efficiency gains
Digitalizing the RFQ process made LSP selection simple and completely transparent:
- By making it easy to compare rates, e2log enabled our client to achieve cost savings of over 20%.
- Furthermore, by automating repeatable processes and eliminating redundant manual work, manpower requirements were reduced by over 40%.
Learn How You Can Save on Spot Rates Today
With the ability to centralize spot rate quote requests and responses, plus our team of experts ready to help you, saving time and money has never been easier.