Case Study: Ocean Freight

Case Study: Ocean Freight

Using SoftAuctionTM technology to maximize savings

Background:

A client in the Retail Apparel Industry wanted to streamline ocean freight bidding, rid themselves of time consuming manual analysis, and streamline communication. FlexRFP™ with Supplier Bid Feedback was the way to timely savings.

Project Goals:

  1. Understand supplier willingness to bid on a per lane basis
  2. Reduce analysis and reporting time
  3. Communicate with suppliers in an orderly fashion
  4. Maximize savings

Execution Strategy:

  • Invited over 10 carriers to participate
  • A 20 question RFI was developed to qualify suppliers on important service criteria
  • Setup over 500 items (lanes) for bid using upload from excel feature
  • Suppliers compiled their bids in Excel and then uploaded them into FlexRFP™.
  • FlexRFP™ analysis and reporting module was used to rapidly analyze suppliers’ bid performance
  • FlexRFP™ auto generated supplier bid feedback reports (see example below).
  • Feedback reports were provided to suppliers in-between RFP bid rounds online.
  • Secondary bid round data was uploaded into FlexRFP™ in the same manner as 1st round

Results:

  • Project start to finish time was reduced by 35% versus previous years
  • Project savings were approximately 19%.
  • Suppliers did not complain about the multiple round aspect of the project with feedback.
  • Project was easy for suppliers

ocean-freight-chart

Other bid feedback options:

  • Can use other bid feedback options: best bid and quartile ranking (hidden in this example)
  • Report is available on-line for viewing or can be dumped to excel
  • Buyer chooses bid feedback range (example above is 5 (1-5%, 6-10%, etc.)