Organisations have significant transport spends but generally continue to run transport procurement using a fragmented piecemeal process. This is typically categorised by taking local decisions or even if centralised procurement teams exist, decision making is on a plant or regional basis and sometimes taken through a lane by lane analysis.
In general this is done because the complexity of the procurement, hundreds of lane and truck size combinations, with different level of capability of providers across regions and lanes is difficult to handle together in large bid event.
Technology that is used, "e-auctions", fail to solve the problem as well. One, they do not allow for network wide analysis and decisions, two they make the buyer and seller adversaries by focussing on margin reduction and not cost elimination.
The result of all this is that transport, which by size, could be a strategic category, is bought in a transactional manner.
This means that we are leaving room for service failure by not having strong partners, but are also leaving money on the table, sometimes to the tune 12% - 15% of the freight spend.
ThinkLink has now partnered with BravoSolution, the world leader in transport procurement, to change this landscape. Using our rich understanding of the Indian transport ecosystem coupled with the world leading BravoSolution suite, we can now help source transport strategically on a national network basis.
If you would like to know more about how we can create significant value for you through our transport procurement services, please reach out to us.