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corporate strategy

Freight buying — complexity is increasing and sourcing strategies need to adapt

One of the chief beneficiaries of the growth in e-commerce in recent years is the wider freight sector. And while drones may be some time off (although it could be sooner than we think with both Google and Amazon already making significant progress) the freight industry has seen a range of innovative entrants in recent years. To date much of the innovation has been on the dispatch and operations side, be it GPS tracking or route optimisation. Companies like Scurri and Shutl have secured funding, supporting their attempts to make the delivery process more efficient. However, attention is now being turned to the upfront sourcing side, with some of the leading buyers of freight transport services looking at how they source as they look to combine carriers (delivering the goods) across lanes to maximum effect. The reason is simple. Sourcing optimisation is a key driver for delivering 5 percent to 15 percent improvements in results, and given the volumes being transacted the amounts in question can be quite considerable.