K2 Sourcing was hired to help an Adhesives Company reduce LTL costs, improve carrier performance, and increase operational efficiency. Historically their 7 locations operated independently selecting carriers as they deemed fit with few real agreements in place.
The adhesives company transportation later knew it was time to conduct an RFP. They were short on the right resources and wished to utilize best practice RFP technology to maximize the results. To execute the RFP, they utilized K2 Sourcing’s: Cloud Source application, LTL RFP template, 20 step process with 200-point strategic sourcing quality checklist, and K2 Sourcing’s LTL category advisors and project managers.
Completing the RFP process, K2 Sourcing team members analyzed 21,000 annual line hauls, interviewed stakeholders, wrote and set up the RFP on Cloud Source, (in addition to incumbents) recommended 35 new carriers be invited, trained carriers, received 30 responses, reviewed around 300,000 data points to clarify outliers, conducted detailed negotiations, and provided multiple optimized award scenarios to the adhesives company.
The result of the RFP was 18% savings, fixed line haul pricing for a year tied to negotiated tariffs, and creation of clear routing guides for the 7 locations resulting in more consistent reliable carrier service as well as improvements in internal operational efficiencies.
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