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Plan Transport, Call for Bids, and Negotiation

Objectives:

• Position IT costs and performance against others.
• Increase transparency in costs and performance demands.
• Lower costs by optimizing and redesigning performance demands.

Starting point:

• Shipping data covering a representative operational period
• Existing contracts with forwarders (cargo rates, SLA)
• Current transport costs

Method:

Analyze present circumstances and redesign transport operations using software tools (Logistics Designer, XCargo) that model logistics activities.

Keywords on procedure:

1. By simulating present circumstances the model is calibrated to reflect true logistics interdependencies within the company.
2. Operational costs are calculated based on factor input from service providers.
3. Present costs are benchmarked with operational costs and comparable conditions.
4. Optimize transport demands and organization.
5. Prepare call for bids.
6. Release call for bids and support negotiations.