With over $4.5 billion in annual spend, our client is a diversified manufacturer of specialized industrial products and manufacturing equipment. Operating through 35 historically autonomous business units across more than 200 global manufacturing locations, the client sought KGM's expertise to explore opportunities in leveraging their $250 million transportation spend to enhance competitiveness.
reduced the supply base to 12 freight carriers
consolidated spend across 280+ shipping locations
standardized fuel surcharge program across all transportation modes
harmonized accessorial charges for consistency
Facing mounting cost pressures from competitors and investors, the client engaged KGM Strategy to unify their transportation requirements across a decentralized organization and leverage over $250 million in spend across five key modes.
The KGM team conducted a thorough analysis of the client’s shipment and service requirements, identifying potential cost savings opportunities across over 270 shipping locations.
To achieve significant cost savings, KGM Strategy implemented a global Strategic Sourcing initiative targeting the client’s $250+ million transportation spend across Air, Ocean LCL, Ocean FCL, International Parcel, Truckload, and Less-than-Truckload.
Significant cost savings were achieved by reducing the client’s supply base and enhancing alliance management practices.
