Fortune 100 Retailer Shrinks Freight Procurement Costs By 5% and Ensures 65% Person-Hour Savings
Company Size
1,000+
Country
- India
Product
- IBM Emptoris
- Shipsy
Tech Stack
- Automation
- Digital Forms
- Integrated Portals
Implementation Scale
- Enterprise-wide Deployment
Impact Metrics
- Cost Savings
- Customer Satisfaction
- Productivity Improvements
Technology Category
- Analytics & Modeling - Predictive Analytics
- Functional Applications - Enterprise Resource Planning Systems (ERP)
- Functional Applications - Remote Monitoring & Control Systems
Applicable Industries
- Retail
Applicable Functions
- Logistics & Transportation
- Procurement
Use Cases
- Fleet Management
- Predictive Replenishment
- Supply Chain Visibility
Services
- Software Design & Engineering Services
- System Integration
About The Customer
The client is a Fortune 100 retailer operating across 100 countries and accounting for 8% of India’s total merchandise exports. This retailer is a significant player in the global market, dealing with a vast array of products and services. The company has a substantial presence in various regions, making it a critical player in the retail industry. With a large-scale operation, the retailer faces numerous challenges, particularly in managing its extensive supply chain and logistics operations. The need to optimize freight procurement and enhance supply chain transparency is crucial for maintaining its competitive edge and ensuring efficient operations.
The Challenge
To optimize and enhance the management of massive shipment volumes, our customer had to reduce freight costs, increase supply chain transparency, and automate freight procurement operations. Here’s a list of the critical challenges.\n\nManual freight procurement negotiations\nLack of transparency over market rates and cost deviations\nIncreasing freight spend and cost leakages\nManual processes leading to long turnaround times
The Solution
The solution implemented was an automation-driven, fully integrated end-to-end international shipment management and optimization system. This system replaced the traditional, manual, and error-prone processes with a streamlined, automated approach. Before deploying Shipsy, the retailer relied on spreadsheet and document-based RFQ creation, floating RFQs across shipping lines and freight forwarders over IBM Emptoris, and follow-ups over calls and emails. This method was time-consuming and prone to errors, leading to inefficiencies and increased costs.\n\nAfter deploying Shipsy, the process became significantly more efficient. The solution enabled instant bookings and seamless accommodation of RFQ changes. RFQ tendering across multiple shipping lines and freight forwarders could be done with a single click, and automated follow-ups ensured timely responses. The system allowed for quick and easy RFQ creation through configured digital forms on the shipper’s portal. Shipping lines and freight forwarders could easily bid and negotiate through their own integrated portals. The system also provided auto rate comparison, intelligent bid rankings, and system-led multiple bidding rounds, resulting in the best possible freight rates.
Operational Impact
Quantitative Benefit
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