Efficiency and cost benefits in TICONTRACT link

Freight purchasing with TICONTRACT, the e-sourcing solution for freight purchasing, has brought major advantages to Parker Hannifin, according to Mark Parsons, the company's European Transportation and Logistics Manager.

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Centralizing International Freight Purchasing with E-Tender

All the international transport for the whole of Europe, a freight order volume of over 100 million Euros, more than 50,000 FTLs, distribution from 20 into 35 European countries, all adds up to a massive project. Its remit was to analyze all European transports for Electrolux and put them back out to call for bids. The price requests were to be standardized and carried out in parallel for all 20 countries taking part.

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Cost vs. Benefit

NORDENIA decided to bring a partner on board, specifically for the freight purchasing project. "We wanted to use an electronic platform, and to work with contact persons who had experience in logistics." In March 2009, the decision was made to work with TICONTRACT. The web-based tool for strategic freight purchasing fulfilled 95 % of the desired and necessary requirements from the beginning.

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Synergies across sectors through electronic tendering

As part of a strategic re-positioning of the whole company, the transport logistics was to be re-organized within four months. "In addition to the overall business consultancy of goetzpartners, we were also looking for an expert who could use its logistical know-how to help us in the area of freight purchasing," says Hammer, head of logistics at Klenk Timber AG. "To achieve this, we got a further partner on board with the TICONTRACT platform, and we're more than pleased with the result."

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E-Tender optimizes costs and processes

The European freight procurement 2009, which was the working title of the sourcing procedure run in December 2008, included around 5,500 road transportation segments ex Europe to the distribution centres in 14 European countries. These were mostly temperature-controlled transport segments requiring curtainside/tilt/box, reefer-trailers and reefer-trailers with separation walls for multi-temperature transport. The purchase included both FTL and LTL trips.

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