The delights of pruning away logistics overheads
When Natan Subar, Director of Global Category Management at a leading mining company realized that his supplier base of five logistics providers was one too many, a transformation was about to begin. With an expert team from Infosys BPM providing robust support, Natan seamlessly transitioned to a single third party logistics provider. This case details the rigors of the journey which eventually delivered numerous rewarding outcomes including 13% annual savings and an astounding 45% reduction in administrative effort.
Approach summary:
- Prequalification of suppliers
- Bidder socialization programs
- Site visits, validation, and scoring
- Commercials evaluation and negotiation
- Final supplier selection and transition
- Governance model and monitoring dashboards
Key benefits:
13% reduction in total logistics costs
45% reduction in administrative effort
100% shipment traceability
70% reduction in status follow-ups
25% reduction in lead time
20% improvement in on-time delivery performance
100% safety compliance