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Problem
overview
Solution
overview
Benefits
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Manufacturers:
Commitment --
Increase cost control and cash flow management
Supply Chain Intelligence --
Monetize forecasting skills
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Asset Optimization --
Optimize total supply chain costs (e.g.,
tradeoff between transportation and inventory costs)
Forwarders:
Commitment --
•Improvement
in revenue /cost stream (lower earning volatility)
Tradable
Contracts --
•Better customer portfolio
management
Asset
Optimization --
•Optimize resource planning
•Reduce cost and profit volatility
Increase revenue through product differentiation
Tradable
Contracts --
Increase
effectiveness of revenue management through price discovery
Asset
Optimization --
•Reduce overcapacity risk
Increase capital efficiency (market signals guide future
investments)
Optimize resource planning
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The potential for Manufacturers could be worth
up to 7.5% of Freight Costs.
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Impact Percent of Freight Cost |
| Lower Inventory |
0.5% |
| Fewer Expedites |
2% |
| Reduce Freight Costs |
1-5% |
The potential for Forwarders could be worth up
to 8.5% of Industry Revenues.
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Impact Percent of Revenues |
| Forecast
Commitment |
0.5% |
| Earlier Payment |
1-2% |
| Forecast Accuracy |
4-6% |
The potential for Carriers could be worth up to
11.5% of Cargo Revenues.
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Impact Percent of Revenues |
| Forecast
Commitment |
0.5-1.5% |
| Earlier Payment |
1-4% |
| Forecast Accuracy |
1-6% |
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