Supply and Demand Chain Executive (SDCE) magazine has recognized Source One with a spot on their Top 100 Projects list. SDCE's annual list acknowledges the consultants and practitioners behind the year's most innovative and impactful supply chain projects. It provides an example for supply chain professionals interested in driving the function forward and refining their organization's approach.
This is the 13th year that Source One's team has earned this honor. The spot on SDCE's list commemorates a recent Procurement Transformation project.
Check out some details from the project.
Prior to engaging Source One, a pharmaceutical logistics courier struggled with a fragmented supply base. Historically, they had allowed individual sites to select their own air freight suppliers. In addition to rampant inefficiency, the situation meant the logistics courier could not leverage its combined spend for additional incentives.
These complications were especially unwelcome in a complicated, highly-specialized area of air freight spend. In addition to traditional freight and shipping services, the courier needed partners capable of providing temperature-controlled shipping and services for specialized cargo.
Source One's Approach
Leveraging a cutting-edge route optimization tool, Source One quickly analyzed more than 500 thousand rows of lane data. In addition to identifying providers capable of meeting the courier's needs, the logistics procurement specialists optimized routes based on region, service level, and other critical factors.
Following a comprehensive RFP and negotiations process, Source One enabled the courier to centralize their decision making processes and build better, more strategic partnerships. In addition to cost savings, they found opportunities to secure volume-based commitments and pricing discounts.
With Source One's support, the courier realized savings of over 25% throughout the essential air freight category. These impressive savings were a direct result of the courier's more strategic, standardized approach to supplier relationships. Additionally, a new system for status reporting and KPI tracking ensured the courier could optimize relationships in the long term.
Most importantly, perhaps, Source One provided the courier with a negotiations playbook. Including a wealth of insights and best practices, it promises to guide successful initiatives for years to come.