Transportation procurement requires a tremendous amount of time and resources to perform optimally. It’s a complex process comparing between carriers seeing as there are a plethora of different factors to consider including among others cost, delivery time, and reliability. Transportation procurement plays a big part in a company’s bottom line, not only due to the quality of the transportation services (deliveries on time minimizing downtime), but also the overall cost of the transportation service.
While the quality of transportation services will vary greatly depending on the carrier where you can pick and choose the one that fits your needs, there will always be an objectively fair price for each of the quality ranges. The challenge is figuring out what price that is and then pushing it as low as it can go by utilizing and comparing with the competition for the specific carrier, and then making sure the price stays fair by continuously adjusting it according to the price development of the market.
Well, that’s what we’re here to help you out with. Prognos can bring your transportation procurement to the next level. Want to know how? Continue reading or contact us today for more information.
Figuring out how much your transportation SHOULD cost
Regardless if you’re about to enter the negotiation phase with your current or completely new carriers, there’s almost always room for negotiation – don’t let them tell you otherwise. There is always an objectively fair transportation price range based on the global market, the so-called “should-cost”. The should-cost price is simply the amassed cost data of carriers similar to yours from several sources all over the world. Thus, giving you a transportation price benchmark to compare with and support your vendor negotiations.
Just don’t forget – this is only a benchmark. By utilizing competitors to the specific carrier you can push it even lower, where Prognos should-cost trackers help you ensure the right price over time according to the market price, thus allowing for longer collaborations with carriers.
The importance of concrete cost data
Knowledge is power, and data is knowledge.
Having access to vast amounts of cost data is necessary for you to get the most out of your suppliers. It gives you important insights into both direct and indirect costs concerning the procurement in transportation and the industry as a whole. This cost data and information will give you an edge when negotiating with your suppliers, or at least level out the playing field.
Using Prognos transportation procurement software
While Prognos platforms aren’t transportation procurement software as per the traditional definition, its functions provide similar benefits on the bottom-line. Our platform gathers data from multiple sources all over the world to give you up-to-date transportation data in one place where you can access indices for raw materials, manufacturing costs, taxes, labour costs, and currencies. They allow you to track the price development of all relevant costs for transportation services and secure the right prices over time.
Prognos is available as two different platforms:
- From our platform, Prognos Tailored, you can access interactive, continuously updated, reports where you can drill down in your materials, compare the prices to your cost development, export the graphs, or export the underlying data for further analysis. The reports are customized for you by Prognos, leaving you to focus on the negotiation strategy and not digging for the data. You also get access to several different features including should-cost trackers, selected indices, and country focus.
- With Prognos Online you get access to over 8 000 indices on raw materials, components, wages, and currencies in an interactive online tool capable of transforming the data to fit your needs.
Get in touch with us today and learn how our platform can provide you with benefits similar to that of transportation procurement software.
Frequently Asked Questions
Benefits of procurement tool for the transportation industry
Sourcing in the transportation industry is both a complex and resource-intensive process. Utilizing a transportation procurement software maximizes procurement efficiency and reduces time-waste.
- Saves time
- Access to competitive sourcing
- Data forecasts for risk mitigation
- Should-cost analysis on the transportation industry to remain competitive at any given season
Common problems in transportation procurement
- Excessive energy and time waste
- Risk management
- Lack of efficient sourcing
- Inaccurate data
Adopting transportation procurement software tool can help tackle common problems faced in procurement in the transportation industry and align your procurement strategy in the right direction.
How will the Prognos' transportation procurement tool assist supplier negotiations?
- The Prognos’ transportation procurement software tool provides you with cost data tailored specifically to your needs. The Prognos procurement software covers all verticals of business and provides reliable, data-backed information for you to conduct fact-based negotiations and receive the best deals within the market.
- The Prognos software provides you with automated reports consisting of should cost trackers, selected indices, and country-specific focus allowing you to conduct fact-based negotiations efficiently and effortlessly with suppliers. This ensures you receive the best market rates and achieve cost efficiency in the transportation procurement process.
What is procurement management?
Using a transportation procurement strategy helps you select the most cost-efficient choices that optimizes your sourcing cycle and overall business operations.