Premium Animal Feed manufacturer
Situation
A leading animal feed business in Australia was facing high transportation costs in their supply chain. They required landside freight services in both Australia and the US, as well as sea freight from Australia to the US. The business had limited visibility into their freight charges and invoicing, which made it difficult for them to make informed decisions and reduce their expenses.
Approach
To address the business’ challenges, we developed a comprehensive supply chain solution that focused on optimising their freight process. We conducted a freight tender with multiple rounds of negotiations to identify the most cost-effective carriers for both sea freight and US landside transportation as well as optimise their inland US transportation. We also solved for the use of the most efficient port locations, which further reduced costs. Finally, we implemented a comprehensive freight invoice audit process to ensure the accuracy of freight charges and enable the identification of discrepancies into the future.
Outcome
The changes we implemented ultimately delivered annual cost reductions of 20%.
Additionally, the introduction of the freight audit and checks improved the transparency of freight charges as well as assisting the client to better understand and manage their freight costs
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