Strategic Sourcing on Outbound Bulk Logistics
Strategic (Out)sourcing of Transport
Sustainable Value Created
- The RFP tender resulted in €5.1 million in annual savings (including €1 million from the partial outsourcing of internally organised transport).
- Fixed-price agreements for designated lanes were established, and the use of the spot market was optimised.
- The number of suppliers was reduced from 131 to 56 partners, enabling stronger partnerships and better governance.
- Transport agreements were improved by introducing clearer pricing mechanisms, SLAs, fuel surcharges and indexation rules, strengthening operational control.
- All negotiated savings, rates, and SLAs are systematically embedded and safeguarded within a best-in-class logistics platform, ensuring sustainable and easily manageable value capture.
Client Profile
Western European material processing company, operating a dense outbound logistics network with approximately 180,000 transports per year and an annual spend of €50 million on outbound bulk logistics (walking floor, tipper, container trucks, etc.).
Project Scope
The project consisted of strategic sourcing of outbound bulk logistics (dry transport), a highly commoditised category with contracts ending by 31 March. The scope covered €44 million in annual spend across Belgium and the Netherlands, with 131 transport providers. The setup included a mix of own fleet, fixed-price agreements for designated lanes and spot market sourcing. Key challenges included a fragmented supplier base, limited price transparency, operational inefficiencies, and the need to increase the share of lower-cost fixed-price route agreements, while safeguarding service continuity.
Hudicor’s Approach
We launched an end-to-end strategic sourcing review, assessing internal needs and identifying opportunities for further outsourcing to the external market. The process was executed through a hands-on, two-round RFP covering €44 million, where transports cluster opportunities were presented. Scenario building (including optimal use of the spot market), fact-based negotiations and network optimisation through route clustering were applied. These analyses supported the contracting process based on an in-depth cross-functional transport agreement.
Hudicor established a governance structure with clearly defined SLAs and a supplier relationship management tool to ensure sustainable results in the years to come. Finally, a phased transition plan was developed to further outsource internal transport activities with the highest cost-saving potential.
Realising a sustainable annual cost saving of 12% while creating a cross-fuctional contract and a clear governance structure
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