Supercharge Your Inbound Freight Operation
Just because it’s coming in instead of going out doesn’t mean there isn’t room to improve. Uncover insights, better coordinate between purchasing departments and vendors, and assume better control of your inbound operations.
Fine-Tuning Your Inbound Operation
We’ll work with you to design new, best-case practices and share those practices with your vendors as an ongoing process. Redwood:
- Examines the decision to purchase freight prepaid or collect
- Gives vendors access to your new vendor routings
- Quantifies non-compliance as excess cost that you can charge back to vendors
Internal Business Case Development
It is important to develop a compelling business case that enumerates the benefits of the program but also realistically acknowledges the challenges and risk involved and how to mitigate them. Having a “been there, done that” perspective is invaluable in convincing your stakeholders to move forward, and only providers with relevant experience are able to provide this.
Redwood is experienced in gathering data, even if it’s incomplete or “messy.” It can be difficult and time consuming to gather data, but Redwood’s proficiency and contextual experience eases this process.
Supplier Classification / Prioritization
Converting a supplier from prepaid to collect terms is not as simple as flipping a switch, as there’s a great deal of analysis and negotiation involved, particularly since converting every supplier will not make economic sense. Redwood helps you understand where to start and how to prioritize.
Network Capability Analysis
Part of the evaluation framework needs to include a deep-dive into the capabilities (both current and potential) of an organizations’ distribution network.
Analysis – Determination of Target Allowance Costs
Redwood identifies how much your supplier needs to reduce their cost in order to justify the change in freight terms.
Freight Allowance Agreement
The final step in the process is the completion of the Freight Allowance Agreement, which details the discount calculations, as well as provisions for changes in fuel costs
Taking control of inbound freight means this new opportunity must be supported by the right combination of technology and personnel.
Redwood has designed a vendor web portal that gives suppliers visibility into their purchase orders and communicate ready-to-ship status.
Measure and Evaluate
While the primary measure will always be the reduction in purchasing costs, there are other meaningful savings as well that need to be recorded. Redwood identifies those measures based on your business needs.
Cost Recovery & Automation
We use a proven, one-two combo to make sure our clients maximize their inbound freight operations:
Uncover Hidden Costs
Many clients have hidden freight costs buried within vendor invoices. Our economic analysis digs out these costs and discovers opportunities to save money by changing terms and taking advantage of lower freight costs.
Optimize Vendor Routes for Savings
With automation, we create optimal routing guides for vendors. We can show these routes through either a secure site or detailed physical maps (if you want to go old school).
The Old Inbound Process
Most inbound routing states a term and carrier on the PO. Sometimes, this information isn’t accurate: weight and fuel may change as shipment and/or fuel costs change—not an optimal solution.
Automation Is the Future
Instead of the old inbound process, Redwood’s technology feeds routing maps and integrated PO routing into a website. This allows the direct communication of carrier changes to vendors with little or no effort on your behalf.