To use a cooking analogy, before you cook a meal, you have to determine what ingredients you need, how many people you’re cooking for, maybe what side dishes or sauces you need to prepare, and so on. Is there an equivalent process or approach companies should take before engaging in a transportation procurement engagement?
“In preparing for a transportation procurement event, you first want to understand what is going on in the marketplace, not only to benchmark yourself to see if savings opportunities are available, but just as importantly, to help you communicate expectations internally [across the organization]” said Tim Dalton, Procurement Manager at LeanLogistics in a recent episode of Talking Logistics.
“I’ve seen in the past where folks would go out and say ‘We’re going to save x percent on transportation’ and there really wasn’t any science behind how they came to that number,” Dalton added. “The most successful folks are those who do their homework ahead of time and communicate clear expectations internally, and by doing so, they’re in a better position to make smarter long-term decisions [during the awarding process] than trying to hit a number because they’ve already communicated it.”
Watch the short clip below for the rest of his response.
In keeping with the cooking analogy, we also talked about three ingredients for success, namely Loyalty, Partnership, and Collaboration. How are those ingredients infused throughout the transportation procurement process? Check out his response in the clip below.
“The big takeaway,” said Dalton, “is that loyalty, partnership, and collaboration is a two-way street; you as a shipper need to provide the same back to your partners…The more successful your partners are, the more successful you’ll be.”
I encourage you to watch the rest of my conversation with Tim (embedded below) for additional insights and advice on this topic. Then post a question or comment and share your perspective on the key ingredients to enabling a successful transportation procurement event.
Watch the full episode!