DESCRIPTION
Companies looking to improve efficiency and reduce costs can gain significant ground in the Supply Chain function. Reason this area has gone under the radar is that companies do not consider Supply Chain to be their core competency.
Not only Warehousing, but Transportation also has almost the same potential in terms of opportunities for Cost Reduction and Process Efficiencies. In fact, a full-picture analysis of Transportation presents a 20-30% Costs Saving opportunity. The approach to Transportation Costs Reduction, though, is different to that of Warehousing.
This presentation discusses in detail the 2-phased approach to Transportation Cost Reduction:
1. Understand the Baseline
2. Identify and Implement Opportunities
We discuss phase in depth. Within the second phase, we specifically discuss 4 levers of Cost Reduction opportunities:
1. Compliance with Contracted Price
2. Negotiated Price
3. Contract Terms
4. Customer Breakpoints and Behavioral Changes
The slide deck also includes some slide templates for you to use in your own business presentations.
This comprehensive guide delves into the nuances of Supply Chain Costs, emphasizing the critical role of Transportation in achieving substantial cost savings. It highlights the importance of understanding the baseline and identifying opportunities for cost reduction. The PPT provides a detailed analysis of three critical service areas—Temperature-controlled Distribution, Special Delivery Services, and Shipment Size—that disproportionately affect costs.
The presentation also covers Lean Six Sigma methodologies to streamline processes and eliminate waste, offering practical templates for implementation. By focusing on compliance with contracted prices, negotiating better terms, and understanding customer behavior, companies can unlock significant savings. This resource is essential for executives aiming to optimize their transportation strategies and drive cost efficiency.
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Source: Best Practices in Supply Chain Management, Cost Reduction, Transportation PowerPoint Slides: Supply Chain Cost Reduction: Transportation PowerPoint (PPTX) Presentation, LearnPPT Consulting
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