Development and evaluation of price models

Price Models, Benchmarking of freight costs, Valuation systems

The Task

The planning, establishment and operation of complex transport chains demand a detailed knowledge of all parameters and framework conditions. Therefore it is necessary to develop valuation systems which allow continous and internally consistent evaluation of existing procedures. Only then can questions, for example, about performance capability of existing logistics, conditions of certain freights or potential to improve processes of certain fields, be approached with any prospect of success.

Development of Valuation Systems

Over the course of a year, a vast amount of data is compiled in ERP and transport management systems. As long as there is no scale of units to measure this data, it is useless and does not allow a targeted evaluation; even less the improvement of structures and processes by optimised modelling. The establishment of an applicable valuation system is essential for the future development of your company.

Analysis of processes and costs

Analysis of logistics processes, structures, transporting costs etc. with respect to corporate divisions and logistics chains, provide the opportunity to understand better the inter-connections and to derive and implement new processes and structures.

Undertaking a benchmarking exercise

Comparing markets by benchmarking opens new perspectives on existing processes and structures. On this basis – with awareness of one´s own strengths and weaknesses - corporate decisions can be properly made and aligned to the market. Furthermore it is much easier to identify the potential for optimisation as well as the bases for future improvement.

Controlling of Freight Costs

The procurement of logistics services have often grown over a long period of time making it difficult to gain an insight into freight conditions. But proper freight costs monitoring allows the clear calculation of transport costs and is an essential prerequisite to evaluate the capability of external service providers and to clearly define the costs. Only when changing volume, customer and storage structures can a tariff system be structured to correctly meet requirements of your own company, with regard to minimising costs and maximising the level of service provision.
In terms of a good business relationship, the existing service providers should be involved at an early stage when considering freight monitoring and any planned changes, in order to create a new tariff system that can be sustainable for both sides.

Support for Tenders

If the changes of structures are fundamental or new markets are to be opened up, it is advisable for shippers to be involved in creating the logistics structures with new service providers. A tender for this service is necessary in order to achieve this. To create a cooperation that is sustainable in the long term and which offers benefits for both sides, preparation and planning are essential. Only if the service provider knows the exact framework conditions, can he provide appropriate prices and the right quality level. And only then does the shipper get services that suit him. Fraunhofer IML supports the preparation and monitoring of tenders by defining the scope of services and regions, suggestions for tariff systems etc. When the tenders of the service providers have been received, normally they can not be directly compared with each other. Each provider has special services which sets him apart from his competitors – in a positive or negative way. Regional variations of fares are not directly apparent in the bid. Fraunhofer IML provides the necessary tools to compare quantitative and qualitative aspects of tariff systems. The consistent analysis and the reflection of the bids with your concrete shipment total assure that you can make your selection for all your logistics fields with confidence.

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