Freight and Logistics

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.

Services

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

Outcome

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.
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