A global manufacturer of fertilizer and explosives had a requirement to tender its stevedoring and road transport services as it had not been contested in many years, and contracts required updating with road safety requirements. The company did not have the in-house expertise to manage a complex sourcing project with all stevedoring and road transport requirements in scope.
A global manufacturer of fertilizers and explosives
To manage the strategic sourcing project, which included:
- Define all forecast stevedoring and road transport requirements and freight standards.
- Build the total cost model for stevedoring and road transport, and service bundling efficiencies.
- Pre-qualify service providers to be involved in the tender process.
- Managing the tender process, including facilitation of negotiation meetings.
- Developed the service contracts for awarded providers.
Caliba delivered the following outcome for the client:
- In excess of a 15% reduction in stevedoring costs, by bundling with road transport services.
- An 8% reduction in road transport costs, by consolidating freight provider numbers.
- Reducing the number of service providers by 20%.
- Updated the safety standard requirement in all freight contracts.
- Having 100% of stevedoring and road freight under contract.