Case Study: Non Food Retail Freight
As discussed in our recent post, freight services have come under increasing pressure in recent times. In a world where international freight availability has been limited, routes have been disrupted and prices continue to rise freight remains a top indirect cost category for many retailers.
Our approach to international freight services
At Ebit, we frequently run freight procurement activity for retail and wholesale businesses. This means that we have solid expertise and insight into key providers across the industry. As a result, we can quickly model a wide range of scenarios and fast-track negotiations to achieve fair-market rates. We seek to match the requirements and service expectations to the appropriate provider(s).
Here’s an example of how we can help:
About the client
Ebit worked with a £150m turnover retailer with branches across the UK and plans to expand across Europe. The client had an established international freight provider and wanted to ensure fair pricing was in place.
Project overview
Ebit engaged with the client on a consultancy basis, reviewing multiple categories and sub-categories within indirect spend. Ebit’s initial focus was on freight services from overseas manufacturing sites to port here in the UK. The client had a good relationship with their existing provider in this category but wanted to ensure fair pricing was being achieved.
Results
The category review we ran resulted in a 16% (£600k annual saving) with the existing supplier being retained and was negotiated and agreed within 1 week of our team starting this category review. The new contract also includes provision for fair pricing over the term of the contract.
Our approach was not just focused on short term rate card improvements. Alongside this, we helped develop a medium and long-term category strategy which, when implemented, will unlock additional savings through investment in technology.
Subsequent to the savings being delivered, we have continued to work with the client to draw up the appropriate commercial agreements, ensuring that the benefits negotiated do not get eroded over time.
About Us
Here at EbitIP we are experts in the field of indirect procurement, delivering real solutions – not just reports! Providing benchmarked and proven savings across multiple categories for many clients we have a track record of innovation and excellence. You can review our case studies around freight and logistics here.
If you would like to find out more about how our procurement services could benefit your budget, contact us to arrange an introductory call.