LogistikPartner delivered a freight project for Fyns Kran Udstyr. The result was an improved bottom line, optimised shipments, better service and greater transparency in the freight agreements.
By Joan Rask, journalist
Freight is something that simply comes with it… Transport and freight forwarding are a fixed part of everyday life at Fyns Kran Udstyr – a basic element every time the company, for example, delivers a crane system or a small parcel when sailors buy rope and accessories. A year ago, Purchasing Manager Peter Lössl chose to involve LogistikPartner, which specialises in helping companies optimise freight.
“I knew there was potential for further savings, but it required a more detailed analysis of all freight shipments, and it was hard to find the time for that in day-to-day work,” he says.
Although Peter Lössl originally trained as a freight forwarder, he needed a sounding board. He has not regretted it – quite the opposite. And it is not only about the bottom line, even though it resulted in a 23% saving on transport costs.
“I thought I had the best freight agreements and that LogistikPartner could probably find a few extra percentage points, but nothing significant – so I was pleasantly surprised. Today I have both the right prices and the right carriers and freight solutions. It gives me tremendous peace of mind in day-to-day work,” says Peter Lössl.
The warehouse he is responsible for contains everything from small, delicate thimbles and locks to large hooks, wires and shackles that can weigh up to a tonne each. At the same time, Fyns Kran Udstyr buys and delivers to most of Europe, which creates a certain diversity in transport needs. Small parcels and standard pallets seemed straightforward, or so people thought – and it was the large crane deliveries that were the primary focus. That is no longer the case, because after a thorough review of all tasks it became clear that the potential for savings was much broader, and standard shipments were part of that too.
Optimisation on all fronts
As a trained freight forwarder, Peter Lössl enjoyed discussing and analysing transport with a qualified partner during the 18 weeks in which LogistikPartner reviewed all his transport agreements in detail. In practice, LogistikPartner’s consultant spent several days physically at the office on Funen, closely following all activities.
“It’s quite impressive, because LogistikPartner don’t just look at the transport agreement itself – they also look at what we could do differently in the shipping process. They challenge the ‘we’ve always done it this way’ approach, and that made a big difference to the optimisation,” says Peter Lössl.
For example, LogistikPartner identified the break-even points that determined whether Fyns Kran Udstyr should re-pack into smaller units or into one larger unit. Peter Lössl is happy to admit that he is slightly impressed that the entire process was carried out as planned, and that everything has gone so smoothly — both in terms of revising existing agreements with hauliers and freight forwarders, and of making internal changes within the company.
“Of course, it has also required resources — primarily from me — to carry out the project, but we’ve now been running the agreement for a year and everything is working without any issues. So when I pay LogistikPartner, I do so gladly, because the fee is directly linked to my savings,” he says.
The customer is a co-decision-maker.
When entering into the agreement, it was important to Fyns Kran Udstyr that the optimisation also meant reducing the number of carriers, and that they had a say in the final choices. Price is always a factor, but many other things were in play too — for example, confidence that the carrier would be able to deliver on the task.
“In our industry, freight is also about experience and expertise, and our credibility with customers is put to the test if we don’t deliver at the agreed time and place. You have to bear in mind that there is ALWAYS someone who can do it cheaper, but that may come at a different cost,” says Peter Lössl.
As part of the agreement, Peter Lössl had Fr8Partner installed — an IT system that gives both him and his colleagues full visibility into virtually every aspect of the company’s freight. It contains all freight agreements (sea, road and express), and it is easy to calculate prices, view transit times and choose a carrier. The system is designed so that Fyns Kran Udstyr can provide customers with several shipping options and prices while speaking with them, and at the same time see carriers, contact persons, email addresses and telephone numbers.
For the purchasing manager, working with freight has become easier.
“There are only a few things employees need to enter. It’s straightforward and provides a good overview, and at the same time it’s easy to check invoices afterwards. It frees up more time for the core business — and that suits me very well,” says Peter Lössl.
“It’s quite impressive, because LogistikPartner don’t just look at the transport agreement itself, but also at what we could do differently in the shipping process. They challenge the ‘we’ve always done it this way’ mindset, and that made a real difference to the optimisation,” says Peter Lössl.
FACTS
Website: Fyns Kran Udstyr
