How Can a Strategic Transport Management Transform Your Supply Chain Management?

Strategic Transport Management is more than just cost control. It’s also about optimizing service levels, reducing emissions, and ensuring resilience in an ever-changing market. Many companies struggle with fragmented carrier networks, inefficient route planning, and limited digitalization. By implementing a strategic and data-driven approach, businesses can unlock significant operational and financial benefits.

We support leading companies streamline transport management and gain control over their logistics operations. Find below a recent project case study of a company that has successfully transformed its transport management strategy with our expertise.

Case Study: A Global FMCG Company transforms its Transport Management Strategy – Optimizing Costs and Performance of the Distribution Network

A leading fast-moving consumer goods (FMCG) company faced rising transportation costs and service disruptions across its European network. The company relied on multiple different operating models in its core markets in Europe with different contract structures, leading to high fragmentation, low transparency, and limited economies of scale.

Key challenges included:

• High freight costs, due to inefficient transport planning and suboptimal communication and exception handling
  
  
• Low service levels, in some of the markets, with frequent delivery delays impacting customer satisfaction and causing penalties additionally increasing the freight costs
  
  
• Lack of digital integration, leading to limited visibility on carrier performance and transport costs
  
  
• A complex mix of 4PL, 3PL and centralized in-house transport managements, causing inefficiencies

Miebach worked closely with the company to develop and implement a strategic transport management model that aligned with business objectives:

• Transport Management simplification
  Reduced the complexity of a highly heterogenious transport landscape with previously 5 different operating models down to a more standardized set-up. Considering differences in maturity of the transport and customer markets (retailers) in Europe.
  
  
• Carrier Management & Strategic Procurement
  Optimized the Procurement processes by evaluating current contracts and implementing contract templates in accordance with best practices in the industry
  
  
• Digitalization crosscheck
  Analyzed the current TMS (Transport Management System) set-up with focus on standardization.

• Reduction in overall transport costs through a more standardized transport management set-up customized for the specific requirements of the individual transport markets.

• Improvement in on-time delivery performance, increasing customer satisfaction and reducing penalties.
  
  
• Reduction in administrative workload, freeing up resources for strategic logistics initiatives.