Global brewer taps NTT DATA to optimize transport logistics procurement
When one of the world’s largest brewers experienced stellar international growth, a complex and costly procurement process begged for efficiency improvements. To align its logistics efforts around the world, the company needed a global logistics procurement program — and partnered with NTT DATA to harmonize its worldwide logistics sourcing efforts.
Necesidad empresarial
With the goal to build consistency throughout and across its base of transportation partners, this successful brewer needed to address multiple spend categories, including full truckload, less-than-truckload and warehousing. Additionally, they needed a standardized procedure, framework and reporting system for logistics procurement across the world.
The company also sought to enhance its ability to execute timely bids and navigate complex, challenging sourcing environments with disparate rate structures and long-term carrier-client relationship norms. They worked with NTT DATA’s transportation experts to get the job done.
Resultados
- Standardizes logistics procurement worldwide
- Reduces costs of individual sourcing events
- Enhances ability to execute timely bids
Besides a marked increase in consistency, the brewer achieved an average cost savings of 16% for individual sourcing events.
Solución
A single adaptable procurement process for logistics
The joint client and NTT DATA team deployed various strategies, depending on the operational requirements and business environment of the region. Whether it was the length of contracts, equipment requirements, pricing structures or multiple modalities, the team incorporated and analyzed the relevant decision factors into a common framework. NTT DATA employed advanced sourcing technology to support simulation of constraint-based “what-if” allocation scenarios to help the client find the best possible combination of costs, service and risk.
The approach developed by the brewer and NTT DATA included standardized processes, reporting and flexibility for local considerations and business practices.
Logistics spend required optimization across disparate markets
A standardized procedure and framework improved the quality of results, increased decision-making speed and optimized logistics spending. NTT DATA and the client worked on the project for several years, executing more than 40 sourcing events all over the world. Transport expenditures ranged from €1M to €200M, and the number of lanes varied from hundreds to thousands. Besides a marked increase in consistency, the brewer achieved an average cost savings of 16% for individual sourcing events.
About this case study
A global brewer optimized transport logistics procurement to improve service levels and reduce costs.