FIT FOR FREIGHT CONCEPT
Making the Difference.
Procurement success is not only about cost reduction, but also about keeping people happy. Of course, above all you need to satisfy your customer, but there are also internal stakeholders who are dependent on your services. And do not forget that you have to do a proper job yourself.
In other words: Doing a proper job in procurement is not only about achieving good prices. Your work will lay the foundation stone for strategic decisions and the appropriate operational implementation.
As for OCCON Procurement is not only about the purchasing process, but also about other up- and downstream processes, thinking about the following elements pays off:
You need to re-think and re-shape your whole procurement approach more often than you wish. Do you have the right set-up? Are you really fit for freight regarding all tasks and people involved?
We help you shaping and adapting your strategy all around transport logistics.
How should your buying team be organized from a global perspective? How is the split of tasks?
How many resources are you putting to which task?
How much freight can your goods bear and how quick do your customers need them?
Single, double, multiple. The eternal question for freight as for any other goods you purchase. Which kind of players do strategically fit you?
The million dollar question! A basic requirement is that your process is compliant. As for the rest you have countless options to run the process. We help you finding a suitable solution.
Rules help to get away from the management-by-exception approach. Of course exceptions are necessary – but they should remain exceptions.
How should your reporting lines be structured? Which level of detail is appropriate for which level of management?
For us, tendering is much more than asking for prices. We deliver full support: from data collection up to the use of rates during the year. Moreover, we give you strategic advice and additional manpower for your team.
The competitive edge of our inhouse-programmed platform is the flexibility which enables you to cover all modes of transport with a tailor-made approach.
We support you in:
Garbage in – Garbage out. The basis for success in procurement is excellent data quality. This is where our work starts: with a comprehensive data sanity check: Jewels in – Jewels out!
Another key factor is the tender’s set up. We help you deciding what is suitable to your needs.
A list of company names is not enough. We assist you in identifying your key account managers.
Like in all other aspects of life, it is the communication that is paramount to obtain what you want.
We launch your tender according to your targets and help managing that deadlines are respected.
You can start the analysis directly after the deadline. Either on your own or done by our team – just as you prefer.
Picking the best price only is certainly not your intention. Price vs. service risks need to be balanced. We support you with different scenarios to allow for robust decisions.
Apart from the style of negotiating a professional preparation and feedback to the carriers is key.
CONTRACT & SPEND MANAGEMENT
Having closed a contract with a supplier is not the end of story. Au contraire. Now the daily tasks begin:
Communicating your decisions and commitments is the start of your new contracts. With our support this process runs efficiently, well-documented and compliant.
Your allocation data is the heart of all downstream activities. The clearer you are, the better you remain in control.
Update and distribute your shipping forecast with few mouse-clicks only.
Price adjustments may be unavoidable, be it due to cost explosions, force majeure or agreed price adjustment mechanisms.
It is not enough to do a brilliant job in your global tender when your cost advantages are eaten up by too many emergencies that are purchased in an uncontrolled environment.
We help you in making your rates available to all parties involved. Real-time and unmistakable.
DATA, REPORTING & CONTROLLING
Getting information out of data is the pre-condition for a meaningful reporting. Only accurate data brings controlling into a position to take countermeasures before it is too late.
We help you collecting forecast volumes from your internal customers. With our solutions in place you can make sure you get consistent data.
Shipment data need to be derived from your sales or production forecast. This task is not trivial at all and can lead to enormous faults.
Up to 20% of all freight invoices are wrong. With our support you can check 100% of all invoices on their accuracy.
Measuring the performance rendered by your suppliers is useful to take on an objective view for future decisions.
Figures need to be reported to decision makers. Aggregating the data at the right level is the art of business intelligence.
Global Cost Control.
This is the overall target of all endeavors undertaken within the field of procurement. We help you in achieving this goal and support the change management process necessary for this mission.
Be at the Speed of Life.
Knowing your markets is basic work often neglected. Understanding your relevant supplier market, the pricing structures and current tendencies should be influencing your approach to the market.
OCCON provides you with applications that enable you to identify potentials and to consider all important aspects of the market:
Of course you cannot influence the cost drivers like fuel, personnel, equipment cost etc. However, it is important to know them for negotiations with your carriers.
You are paying a certain rate. But knowing the cost function of your suppliers is vital for negotiations especially if you like to close long-term contracts.
What are you paying and what do others pay for the same or any similar service? Benchmarking reveals weak and strong spots.
Forecasting rates is as difficult as predicting stock prices. However, a decent model is at least better than a pure guess.
Demand & Supply.
Rates are not only cost driven. Imbalances contribute a lot to irrational and volatile markets. Understanding the impacts can be of advantage for your decisions.
Policy influences transportation and in consequence thereof the modal split decisively. Your transport concepts should always be made with regard to the political will.
Suppliers are not all the same. They differ in size and strategy – only to mention the two main criteria. It is important to filter out the ones that strategically fit you.
Your procurement strategy should be interrelated with the strategies of others. Monitoring the trends before they get pervasive may give you a first mover advantage.