Strategic Sourcing on Outbound Bulk Logistics
spend consolidation and supplier aggregation program
Sustainable value created
- The RFP tender resulting in €5,1 million annual savings (including €1 million in partially outsourcing internally-organized transport)
- Fixed lane agreements made and optimized use of spot-market
- Supplier base consolidation from 131 to 56 suppliers, enabling stronger partnerships and governance
- Improved transport agreements with clearer pricing mechanisms, SLA’s, fuel surcharge 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-EU 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 bulklogistics (walking floor, tipper, container truck etc)
Project Scope
Strategic sourcing of outbound bulk logistics (dry transport), a highly commoditized category with contracts ending by 31 March. The scope covered €44 million of annual spend across Belgium and the Netherlands, involving 131 suppliers and a mix of own fleet, fixed-price lane agreements 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 route agreements while safeguarding service continuity.
Hudicor’s Approach
End-to-end strategic sourcing review by reviewing internal needs and the need to outsource further to the external market. Execution through a hand’s-on two-round RFP covering €44 mio in spend with proposed cluster transports. Scenario building (incl. optimizal use of the spot market), fact-based negotiations and network optimization inputs (route clustering) supported contracting based on an in-depth cross-functional transport agreement.
Hudicor set up a governance structure with clear SLA’s and a supplier relationship management tool to ensure sustainable results in the following years.
A phased transition plan was worked out to further outsource the internal transports with the most cost-saving potential
Realizing a sustainable annual cost saving of 12% while creating a cross-fuctional contract and a clear governance structure
Interested in accelerating procurement performance and savings?
