Total Logistics Launches Transport Benchmark Service
25/02/2009
Supply chain specialist Total Logistics has launched a benchmarking service that enables businesses to compare the cost of their transport operations with organisations of a similar size and type. This new solution is designed for businesses in the retail, manufacturing and food sectors which are keen to reduce the cost of their current third party logistics (3PL) provider, while generating qualitative data on their performance.
The service both provides supply chain managers with an ‘apples with apples’ comparison that contrasts rates in ways that are commercially meaningful, and also offers more specific data on transport performance by region, account and even product line.
In order to create the benchmarking report, companies supply a representative sample of consignments over a monthly period, including customer postcodes and costs per consignment. Once complete, this data enables Total Logistics’ consultants to analyse a business’s transport expenditure on the basis of cost per mile and consignment size, comparing this with relevant peer organisations to provide meaningful management information.
Peter Roan, partner at Total Logistics, said: “This tool is proving extremely popular among a wide range of businesses, especially in the current economic climate. The benchmarking discipline not only enables like-for-like cost comparisons, but also provides valuable information on service levels and other qualitative data.
He continued: “Many companies are unsure whether or not the services provided by their 3PLs offer good value for money. This benchmarking tool presents management with real information to support negotiations with their transport solutions provider.”
Recent projects undertaken by Total Logistics indicate that many businesses are paying as much as 20 per cent over current market rates for the provision of 3PL services.
To find out more about the Total Logistics benchmarking service, please call + 44 (0)118 977 3027 or go to www.total-logistics.eu.com.
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