With evidence mounting that the US economy is entering a recession and with fuel costs rising out of control, companies are looking for ways to reduce costs to boost their net income and earnings per share. Transportation Spend Management is a prime opportunity.
The Aberdeen Group believes that companies can save 8.8% of their annual freight bill with more sophisticated Transportation Spend Management. They documented their contention with results from best-in-class companies. Various transportation industry case studies, and anecdotal evidence, suggest that this savings opportunity may be as high as 15-20% for many companies.
Whichever figure you accept, the opportunity is significant!
If you want to significantly improve your transportation spend processes and reduce freight expense, you must connect the procurement-through-payment processes and both measure and benchmark your results.
LeanLogistics, the Spend Management Expert, has develop best practices that can help you reduce your costs. LeanLogistics has constructed a Spend Management solution that ensures:
- Purchasing volume leverage is maximized and that you employ the right carriers who provide you with the best rates
- Shipments consistently follow corporate rules on using low-cost/best value carriers and service options
- Carrier payments are made correctly the first time
- Business Intelligence is employed to continuously improve the process
- Network benchmark data on both rates and performance is employed to ensure that key issues are addressed and proper solutions implemented
Your transportation spend management can be best-in-class, with implemented best practices that yield cost controls and fiscal responsibility -- and significant annual freight bill savings!
LeanLogistics has long been the industry thought-leader for best practices in Transportation.
Our most recent sponsorship resulted in the authoritative guide to Spend Management, "The CFO's Guide to Transportation Spend Management," authored by Adrian Gonzalez, Director of ARC Advisory Group's Logistics Executive Council. It delineates the
key questions that CFOs need to ask their transportation executives about Transportation Spend Management.
To download this, and to learn more about the exceptional value LeanLogistics' clients have received from LeanLogistics' Spend Management programs,
click here.
