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Magna Valor

Transport tendering strategy and execution

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Our client is a global manufacturer of building materials with 7 factories across Europe placed in top 10 manufacturers in the world.

CapabilityTransport process optimisationShare

Challenge

A leading manufacturing company struggled with escalating freight transportation costs, particularly in Full Truck Load (FTL) and groupage segments. Inefficient carrier selection, lack of competitive bidding, poor route planning, and market volatility led to reduced profit margins and weakened competitiveness, highlighting the need for a strategic overhaul of transport procurement and management processes.

Actions

The company implemented a multi-pronged strategy to reduce transport costs:

  • Transport Tenders – launched competitive bidding processes to identify cost-effective carriers without compromising service quality.
  • Strategic Negotiation – leveraged volume commitments and long-term partnerships to secure favorable rates and agreements.
  • Process Optimization – invested in advanced logistics software for efficient route planning, load management, and consolidation to reduce empty runs.
  • Data-Driven Decision Making – used analytics to understand cost drivers, market trends, and inform tender criteria and negotiation strategies.

Results

The initiatives delivered measurable improvements:

  • 12% Reduction in FTL Costs – achieved through better carrier rates, load optimization, and efficient routing.
  • 20% Decrease in Groupage Transport Costs – driven by consolidation strategies, optimized routes, and effective carrier negotiations.
  • Enhanced Operational Efficiency – logistics software and analytics reduced manual errors and enabled agile decision-making.
  • Improved Profit Margins – cost savings strengthened market competitiveness.
  • Stronger Carrier Relationships – transparent tenders and fair negotiations fostered collaborative partnerships for future efficiencies.

Short summary

A manufacturing company reduced FTL transport costs by 12% and groupage costs by 20% through competitive tenders, strategic negotiations, route optimization, and data-driven decision-making. These measures improved operational efficiency, boosted profit margins, and strengthened carrier partnerships, enhancing competitiveness in the logistics market.