Case Studies Fortune 100 Retailer Shrinks Freight Procurement Costs By 5% and Ensures 65% Person-Hour Savings

Edit This Case Study Record

	Fortune 100 Retailer Shrinks Freight Procurement Costs By 5% and Ensures 65% Person-Hour Savings

Fortune 100 Retailer Shrinks Freight Procurement Costs By 5% and Ensures 65% Person-Hour Savings

Technology Category	Analytics & Modeling - Predictive Analytics Functional Applications - Enterprise Resource Planning Systems (ERP) Functional Applications - Remote Monitoring & Control Systems
Applicable Industries	Retail
Applicable Functions	Logistics & Transportation Procurement
Use Cases	Fleet Management Predictive Replenishment Supply Chain Visibility
Services	Software Design & Engineering Services System Integration
Challenge	To optimize and enhance the management of massive shipment volumes, our customer had to reduce freight costs, increase supply chain transparency, and automate freight procurement operations. Here’s a list of the critical challenges.\n\nManual freight procurement negotiations\nLack of transparency over market rates and cost deviations\nIncreasing freight spend and cost leakages\nManual processes leading to long turnaround times Read More
About Customer	The client is a Fortune 100 retailer operating across 100 countries and accounting for 8% of India’s total merchandise exports. This retailer is a significant player in the global market, dealing with a vast array of products and services. The company has a substantial presence in various regions, making it a critical player in the retail industry. With a large-scale operation, the retailer faces numerous challenges, particularly in managing its extensive supply chain and logistics operations. The need to optimize freight procurement and enhance supply chain transparency is crucial for maintaining its competitive edge and ensuring efficient operations. Read More
Solution	The solution implemented was an automation-driven, fully integrated end-to-end international shipment management and optimization system. This system replaced the traditional, manual, and error-prone processes with a streamlined, automated approach. Before deploying Shipsy, the retailer relied on spreadsheet and document-based RFQ creation, floating RFQs across shipping lines and freight forwarders over IBM Emptoris, and follow-ups over calls and emails. This method was time-consuming and prone to errors, leading to inefficiencies and increased costs.\n\nAfter deploying Shipsy, the process became significantly more efficient. The solution enabled instant bookings and seamless accommodation of RFQ changes. RFQ tendering across multiple shipping lines and freight forwarders could be done with a single click, and automated follow-ups ensured timely responses. The system allowed for quick and easy RFQ creation through configured digital forms on the shipper’s portal. Shipping lines and freight forwarders could easily bid and negotiate through their own integrated portals. The system also provided auto rate comparison, intelligent bid rankings, and system-led multiple bidding rounds, resulting in the best possible freight rates. Read More Log in to view content
Contents

Technology Category

Analytics & Modeling - Predictive Analytics

Functional Applications - Enterprise Resource Planning Systems (ERP)

Functional Applications - Remote Monitoring & Control Systems

Applicable Industries

Retail

Applicable Functions

Logistics & Transportation

Procurement

Use Cases

Fleet Management

Predictive Replenishment

Supply Chain Visibility

Services

Software Design & Engineering Services

System Integration

Challenge

To optimize and enhance the management of massive shipment volumes, our customer had to reduce freight costs, increase supply chain transparency, and automate freight procurement operations. Here’s a list of the critical challenges.\n\nManual freight procurement negotiations\nLack of transparency over market rates and cost deviations\nIncreasing freight spend and cost leakages\nManual processes leading to long turnaround times

About Customer

The client is a Fortune 100 retailer operating across 100 countries and accounting for 8% of India’s total merchandise exports. This retailer is a significant player in the global market, dealing with a vast array of products and services. The company has a substantial presence in various regions, making it a critical player in the retail industry. With a large-scale operation, the retailer faces numerous challenges, particularly in managing its extensive supply chain and logistics operations. The need to optimize freight procurement and enhance supply chain transparency is crucial for maintaining its competitive edge and ensuring efficient operations.

Solution

The solution implemented was an automation-driven, fully integrated end-to-end international shipment management and optimization system. This system replaced the traditional, manual, and error-prone processes with a streamlined, automated approach. Before deploying Shipsy, the retailer relied on spreadsheet and document-based RFQ creation, floating RFQs across shipping lines and freight forwarders over IBM Emptoris, and follow-ups over calls and emails. This method was time-consuming and prone to errors, leading to inefficiencies and increased costs.\n\nAfter deploying Shipsy, the process became significantly more efficient. The solution enabled instant bookings and seamless accommodation of RFQ changes. RFQ tendering across multiple shipping lines and freight forwarders could be done with a single click, and automated follow-ups ensured timely responses. The system allowed for quick and easy RFQ creation through configured digital forms on the shipper’s portal. Shipping lines and freight forwarders could easily bid and negotiate through their own integrated portals. The system also provided auto rate comparison, intelligent bid rankings, and system-led multiple bidding rounds, resulting in the best possible freight rates.

Impact #1	The implementation of the automated freight procurement system led to significant operational improvements. The retailer achieved 5% savings through smart and automated freight procurement, which directly impacted their bottom line.
Impact #2	The solution also resulted in a 65% person-hour savings, unlocking productivity for management teams and allowing them to focus on more strategic tasks.
Impact #3	The plan-to-ship time was reduced by 5 days, which helped in reducing shipment delays and improving overall supply chain efficiency.

Impact #1

The implementation of the automated freight procurement system led to significant operational improvements. The retailer achieved 5% savings through smart and automated freight procurement, which directly impacted their bottom line.

Impact #2

The solution also resulted in a 65% person-hour savings, unlocking productivity for management teams and allowing them to focus on more strategic tasks.

Impact #3

The plan-to-ship time was reduced by 5 days, which helped in reducing shipment delays and improving overall supply chain efficiency.

Benefit #1	5% savings through smart and automated freight procurement
Benefit #2	65% person-hour savings
Benefit #3	5 days faster plan-to-ship time

Benefit #1

5% savings through smart and automated freight procurement

Benefit #2

65% person-hour savings

Benefit #3

5 days faster plan-to-ship time

Download PDF Version

Overview

Fortune 100 Retailer Shrinks Freight Procurement Costs By 5% and Ensures 65% Person-Hour Savings

Operational Impact

Quantitative Benefit