You need to understand where you are today before you set goals for tomorrow.
The first critical step for optimizing your spend in transportation, distribution and fulfillment is an accurate assessment of the current environment. This means both internally and externally. To be accurate, the analysis must include the most up to date market conditions, as well as forward looking risk variables.
The assessment is not only a snapshot of where the shipper is now, but also where they will be once the new variables are put into place.
Traditionally, the largest shippers only focused attention to price changes when a contract term was coming to a close. Today that landscape has changed. In addition to annual increases, we now see a myriad of new surcharges and policy changes in any given quarter. If you wait 24 months to review your costs, you are likely well into double digit increases. This may be too late to optimize your spend quickly.
SME reviews a host of key cost drivers in addition to all provider contracts.
Our analysis incorporates intangibles found in the shipper/provider relationship.
- Is embedded provider technology a constraint to shifting volume?
- Are there operational factors prohibiting consolidation or volume shifts?
- Are there service level requirements unique to one provider?
- Does the contract contain restrictive penalty language?
For truly optimizing your spend, SME looks at the entire picture when developing the final savings forecast and strategy for a client. Once engaged, we hold a kick-off meeting to mutually agree final strategy, goals and timelines. We then build strong business cases, based on actual client data, to achieve the targeted goals.
Getting Started is Easy
Getting started with Spend Management Experts is easy. We offer companies a no-cost, no obligation assessment of their transportation spend. This means evaluating carrier profitability and identifying supply chain optimization opportunities.Get An Assessment