Case Study: Truck Transportation

The case

A major supplier to the manufacturing industry was to renegotiate its transportation services at a total value of some 3,000,000 Euro.

The case concerned over 2,500 truckloads on some 50 routes to and from 6 European distribution centres.

The approach

The negotiation was completely electronic with some 20 participating suppliers.

The process consisted of an initial RFQ-phase, followed by a careful analysis, and a final iterative bidding.

The result

Prices were reduced by some 10%, and the number of suppliers was reduced to 3. The result was far beyond expectations as the current suppliers had announced a price increase of some 4% for the coming year.

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