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How Ventia Centralised Carriers and Saved Costs Using FreightExchange

FreightExchange

October 25, 2024
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30% Costs Saved Due to Flexibility

100+ Number of Carriers Used

10+ Number of Distribution Centres

Ventia employs 19,000 professionals to design, fund, construct, operate, and maintain major projects and infrastructure assets across the mining, defence & construction industries.

Read how Ventia centralised carriers and saved costs using FreightExchange.

Fragmented Freight and Logistics

At the commencement of our engagement, our client had very strong logistics capabilities in certain areas, but there were no centralised processes or systems. The business unit negotiated rates and requirements on a case-by-case basis and they had contracted hundreds of suppliers. Very few were used in two or more areas of the business and there were large rate variances among suppliers for the same services. SAP FICO & Ariba were in use uniformly, but supplier management processes were complex and time-consuming. Some areas used SAP MM for inventory management.

Centralising Freight and Carriers

Set-Up & Benchmarking: We loaded all of the freight and logistics data needed for a detailed analysis into FreightExchange, including vendor invoices and rates. Benchmarking: We were then able to benchmark freight and logistics costs in multiple geographies and identify strategies to reduce costs by over $2m by implementing a centralised freight management system, consolidating suppliers across the organisation, and optimising inbound and outbound logistics. Implementing FreightExchange: We set up a version of the FreightExchange solution with ten users in a very low-risk area of the business to ensure everything went smoothly.

Cost Savings and Simpler Processes

We monitored the costs incurred for the project versus the modelled ‘pre implementation’ costs monthly. For the six months of the trial period itself, the savings were in excess of 30%.   stars “We decided to extend our usage of the FreightExchange platform because: Having a central point of order placement for all freight enables better cost management as well as volume, route and frequency analysis. It Gave users the ability to select the appropriate carrier and service level to meet their requirements. The platform provides an intuitive user experience and we were able to implement the trial with minimal training. We were able to configure fields to support our accounting processes easily. The system allows easy reporting on costs versus quote. Any discrepancy can be reported and addressed effortlessly.”

Executive Manager

Supply Chain & Logistics

ventia-1

Content

Fragmented Freight and Logistics

Centralising Freight and Carriers

Cost Savings and Simpler Processes

Fragmented Freight and Logistics

At the commencement of our engagement, our client had very strong logistics capabilities in certain areas, but there were no centralised processes or systems. The business unit negotiated rates and requirements on a case-by-case basis and they had contracted hundreds of suppliers. Very few were used in two or more areas of the business and there were large rate variances among suppliers for the same services. SAP FICO & Ariba were in use uniformly, but supplier management processes were complex and time-consuming. Some areas used SAP MM for inventory management.

Centralising Freight and Carriers

Set-Up & Benchmarking: We loaded all of the freight and logistics data needed for a detailed analysis into FreightExchange, including vendor invoices and rates. Benchmarking: We were then able to benchmark freight and logistics costs in multiple geographies and identify strategies to reduce costs by over $2m by implementing a centralised freight management system, consolidating suppliers across the organisation, and optimising inbound and outbound logistics. Implementing FreightExchange: We set up a version of the FreightExchange solution with ten users in a very low-risk area of the business to ensure everything went smoothly.

Cost Savings and Simpler Processes

We monitored the costs incurred for the project versus the modelled ‘pre implementation’ costs monthly. For the six months of the trial period itself, the savings were in excess of 30%.   stars “We decided to extend our usage of the FreightExchange platform because: Having a central point of order placement for all freight enables better cost management as well as volume, route and frequency analysis. It Gave users the ability to select the appropriate carrier and service level to meet their requirements. The platform provides an intuitive user experience and we were able to implement the trial with minimal training. We were able to configure fields to support our accounting processes easily. The system allows easy reporting on costs versus quote. Any discrepancy can be reported and addressed effortlessly.”

Executive Manager

Supply Chain & Logistics

ventia-1

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