CombineNet Presents Strategies for Ocean Freight Sourcing, Addressing Rising Liner Rates, Capacity Concerns, Port Congestion, Risk Management and More
PITTSBURGH, March 14, 2012 /PRNewswire/ — CombineNet, Inc., the leading provider of best-in-class online sourcing technology solutions for global supply chains, is offering 5 tips designed to help ocean freight shippers prepare for the upcoming negotiation season. Based on years of experience helping organizations reach the full potential of strategic sourcing across billions of dollars of transportation spend, CombineNet’s tips for ocean sourcing will assist shippers in preparing for the sometimes difficult process of negotiating the best carrier contracts with the lowest risk.
“One of the most important steps in preparing for carrier negotiations is understanding where and how your organization can benefit from the myriad of options they may bring to the table. Our customers have shared their experiences with us over the course of sourcing billions of dollars in ocean freight, and we’re sharing some of those market insights as shippers begin preparing for the ocean freight contracting season,” said Rich Wilson, Chief Executive Officer of CombineNet. “Our contribution to the industry knowledge base underscores the importance of being flexible in ocean freight shipping, while illustrating the leverage that flexibility can bring to the negotiation process.”
The company’s e-sourcing product, CombineNet ASAP, is used by companies to source everything from office supplies to complex services, and is considered one of the leading solutions for managing complex transportation sourcing activities. Working with the world’s largest shippers and carriers over the years has provided CombineNet with insight into a wide variety of successful transportation sourcing strategies, and the company recommends that shippers and their stakeholders review the following before the first ocean freight bid is even requested:
- Equipment options: something as simple as moving from a 40-ft container to two 20-ft containers can make a difference in cost, service and drayage options.
- Alternative ports: Shipping to or from alternate ports on the same coast can provide cost savings opportunities, as carriers with excess un-contracted capacity at these alternates will price competitively.
- Cost breakdowns: what couldn’t be negotiated yesterday is now, in a soft market, “up for grabs.” The little things, from drayage to bunker charges to assessorial costs can make a big difference.
- Services levels: frequency of sailing days, transit times and on-time delivery commitments can sometimes be worth a cost trade-off, particularly if the alternative is a late shipment with a low-cost carrier.
- Carrier scorecards – software makes it easy to bring key performance indicators to every meeting with a carrier — which helps immensely with negotiations.
CombineNet has published a white paper detailing the potential benefits of reviewing these options when preparing for the upcoming ocean sourcing season. “Ocean Sourcing: 5 Tips to Prepare for Ocean Freight Negotiations and Contracting” is now available on the CombineNet website at http://www.combinenet.com/resource-center/whitepaper-ocean-sourcing.aspx.
CombineNet ASAP is a best of breed e-sourcing solution that enables buyers to work with suppliers in a more collaborative, flexible sourcing process to present sourcing options that go beyond traditional online negotiations. With the creativity and flexibility provided by Expressive Bidding®, a shipper’s transportation carriers are encouraged to express the value they can bring to the table through varying levels of capacity commitments, service levels, and even lane alternatives. With CombineNet’s patented bid analysis and optimization technologies, shippers can quickly and easily evaluate carrier proposals alongside business preferences and risk factors to find the right award strategy for their business.
CombineNet, Inc. delivers award-winning best-in-class e-sourcing software solutions through its products CombineNet ASAP® for advanced e-sourcing, CombineNet Spend Analysis, and CombineNet Contract Management. Using these Software-as-a-Service (SaaS)-based sourcing products, CombineNet customers can rapidly adopt proven solutions for increasing spend under management and improving enterprise spend insights. Now in its twelfth year in business, CombineNet is known for its track record in driving significant bottom-line and productivity savings for its clientele which includes: Procter & Gamble, General Mills, Sears, Johnson & Johnson, A.P. Moller-Maersk, Bayer, Coca-Cola, PepsiCo, Reckitt Benckiser, AstraZeneca, and many more Global 2000 firms. www.combinenet.com
SOURCE CombineNet, Inc.