Service: Seafreight Procurement Support

Drewry provides a three-tiered approach to procurement support. These are based on the existing resources of Drewry researched publications and our specialist supply chain advisors.

Tier 1 - Comparative Market Data/Benchmarking allows clients to purchase packages of regular Drewry publications and online databases to support their procurement activities.

Tier 2 - Specific Customer-Focused Data and Consultancy takes the information in Tier 1 and adds unpublished market intelligence with the strategic insight of our consultants. We provide advice based on meeting the specific supply chain procurement requirements of the client and formulate the information in a presentation twice a year. We also provide customers with contact details for a Drewry consultant who will be available for ad-hoc consultation services throughout the year.

Tier 3 - Contract Negotiation Advisory builds on Tier 2 and makes a senior consultant available to participate in the negotiation for the client or even run the procurement process.

Benefits of the Seafreight Procurement Support service:

Saving money on freight costs by:

• Knowing what’s available in the market.
• Adjusting the contract year to commence at low points in demand.
• Adjusting the contract duration to reflect the supply/demand outlook.
• Knowing market benchmark rate levels of routes.
• Advising on break-even and walk away points for carriers and forwarders. Identifying win/win scenarios.
• Engaging only with those carriers and forwarders capable of meeting your service requirements.

Reducing supply chain risks by:

• Managing the trade-off between space guarantees and price.
• Providing information on relative reliability of carriers.
• Measuring relative financial survivability of carriers and forwarders.
• Advising on spreading risks across groups of carriers versus the volume scale effect.
• Optimum schedule routing and transit time management.
• Advising on hedging through container freight rate derivatives.

Reducing the cost and increasing the effectiveness of the procurement process by:

• Access to market intelligence impossible to duplicate internally.
• Having a totally independent expert industry partner on your side.
• Contracting out the irregular and resource intensive contract process whilst retaining full control. Keep running the day to day business.
• Adopting online, automated tenders for freight procurement.

Service tiers:

	Tier 1 Comparative Market Data / Benchmarking	Tier 2 Specific Customer Focused Data and Consultancy	Tier 3 Contract Negotiation Advisory
Freight Rates
Routes & Schedules
On-Time Reliability
Carrier Profiles
Carrier/Forwarder Financial Strength
Supply/Demand
Negotiation Strategies
Negotiation Participation
Tender Administration

For enquiries and questions, contact us at supplychains@drewry.co.uk with your full contact details or call one of our offices.