A global manufacturing company in South Africa had not contested their freight and logistics requirements for a few years, so they had a requirement to take their whole freight and logistics spend to market via a structured tender process. The company, however, did not have the in-house expertise to complete such a complex tender.
A global manufacturing company, with operations in South Africa
To manage the complete sourcing process, which included:
- Supply market analysis of >30 service providers for transportation, logistics and freight forwarding.
- Selecting potential Tenderers based on safety record, capability and service quality.
- Tendering the requirements to the pre-qualified list of Tenderers.
- Negotiating with the two top scoring service providers
- Finalising the contract terms and conditions with two service providers, splitting the transport and freight forwarding services
Caliba delivered the following outcome for the client:
- Step change improvement in safety, reliability and quality of service provided.
- Preferred customer status benefits, including priority during times of heavy demand.
- Introduction of a management dashboard and KPIs to manage performance.
- The tender was completed on time and achieved all the objectives.
- Total cost reduction of ZAR 6M per annum which includes savings on both transport and clearing services.