Freight Spend Analysis: How Holcim Revolutionized Their Supply Chain Visibility

Introduction: The Power of Freight Spend Analysis in Modern Logistics

In today’s complex global supply chain landscape, companies are constantly seeking ways to optimize their logistics operations and reduce costs. One powerful tool that has emerged as a game-changer is freight spend analysis. This process involves a comprehensive examination of transportation expenses, helping businesses identify inefficiencies, negotiate better rates, and make data-driven decisions. In this article, we’ll explore how Holcim, a global leader in building materials, leveraged freight spend analysis to transform their supply chain visibility and improve cost competitiveness.

Recent data from industry reports highlight the growing importance of freight spend analysis:

• According to a 2023 survey by Gartner, 78% of supply chain leaders consider freight spend optimization a top priority for the next 12-18 months.
• The global freight audit and payment market is expected to reach $2.3 billion by 2027, growing at a CAGR of 5.8% from 2022 to 2027 (MarketsandMarkets).
• A study by Drewry Shipping Consultants reveals that companies implementing advanced freight spend analysis tools can achieve cost savings of up to 15% on their transportation expenses.

Holcim: A Global Leader Facing Supply Chain Challenges

Holcim, founded in 1912 in Switzerland, is a global powerhouse in the building materials industry. Operating in over 70 countries, the company provides sustainable and innovative products for the construction sector, including cement, aggregates, ready-mix concrete, and asphalt. Holcim’s commitment to sustainability and digital transformation has positioned it as a forward-thinking leader in the industry.

However, even industry giants face challenges when it comes to managing complex global supply chains. Holcim encountered several obstacles that hindered its operational efficiency and cost transparency:

• A vast, geographically distributed supplier base with thousands of trucking providers across multiple markets
• Difficulty in managing freight rates from numerous localized suppliers, leading to a lack of comprehensive cost overview
• Inconsistent key performance indicators (KPIs) across different countries, resulting in limited visibility of global supplier awarding metrics
• Heavy reliance on manual processes for executing tenders, leading to inefficient and decentralized sourcing workflows

Alexander Scheld, Global Head of Logistics at Holcim, emphasized the critical nature of these challenges: “Given the low cost per ton of our products, monitoring logistics costs is extremely important in our industry.”

The Solution: Embracing Digital Freight Tendering for Enhanced Visibility

To address these challenges, Holcim sought a comprehensive solution that would consolidate all of its suppliers while catering to the specific needs of each geographical market. The company implemented a ‘scale up’ strategy, gradually extending a digital freight tendering platform across an increasing number of country-based teams.

The chosen solution, Freightos Procure, offered several key features that aligned with Holcim’s needs:

• Immediate analysis of supplier quotes
• Centralized freight procurement at the country level on a single platform
• Customization options, including multi-language support, to meet specific market requirements
• An intuitive interface and customer-centric onboarding process to facilitate easy change management across 30+ countries
• Commitment to ongoing product innovation to keep Holcim at the forefront of supply chain leadership

Scheld explained the rationale behind this approach: “We wanted everything in one place to enable seamless integration between the supplier’s quote and our ability to evaluate it.”

Implementing Freight Spend Analysis: Holcim’s Journey to Success

The implementation of the digital freight tendering platform marked a significant shift in Holcim’s approach to freight spend analysis. Here’s how the company leveraged this tool to transform its supply chain visibility:

1. Standardization of Internal Processes

During the rollout, Holcim focused on standardizing internal processes for procuring rates across all units. This ensured that teams were fully synchronized, creating a uniform approach to freight spend analysis across the organization.

2. Centralized Freight Procurement

By centralizing freight procurement at the country level on a single platform, Holcim gained a holistic view of its logistics operations. This centralization enabled more effective freight spend analysis by providing a comprehensive overview of costs and available market capacity.

3. Customization for Local Markets

The platform’s ability to customize features, such as multi-language support, allowed Holcim to adapt its freight spend analysis to the specific requirements of each market. This flexibility ensured that local nuances were captured in the analysis, leading to more accurate insights.

4. Streamlined Supplier Management

With the new platform, Holcim could easily manage the entire tendering process across hundreds of suppliers. This streamlined approach to supplier management enhanced the company’s ability to conduct thorough freight spend analysis and identify cost-saving opportunities.

5. Global KPI Visibility

The implementation of the digital platform provided Holcim with global visibility of its KPIs. This comprehensive view enabled more effective freight spend analysis, allowing the company to benchmark performance across different regions and identify best practices.

The Outcome: Transforming Visibility into Tangible Results

Holcim’s investment in advanced freight spend analysis through the digital tendering platform yielded impressive results:

1. Enhanced Cost Competitiveness

By leveraging the insights gained from freight spend analysis, Holcim significantly increased its cost competitiveness on the tendered freight volume. The ability to analyze and compare rates across a wide range of suppliers enabled more informed decision-making and negotiation power.

2. Improved Operational Efficiency

The streamlined process allowed Holcim to distribute complex requests-for-quotation (RFQs) in just a few minutes, a task that previously required substantial time and effort. This efficiency gain freed up resources for more strategic activities.

3. Increased Supplier Engagement

With the new platform, Holcim was able to boost the number of invited suppliers for each tender. This expanded pool of potential partners, identified through comprehensive freight spend analysis, led to more competitive pricing and improved service options.

4. Global Scalability

The success of the implementation was evident in its rapid scaling across 30+ countries and 12 languages. This global reach ensured that Holcim could conduct consistent freight spend analysis across its entire operation, identifying opportunities for cross-border optimization.

5. Strategic Empowerment of Country Teams

Country teams benefited from greater transparency and execution power, managing the entire tendering process within the platform. This empowerment, backed by robust freight spend analysis, enabled more strategic decision-making at the local level.

The FreightAmigo Perspective: Empowering Businesses through Digital Logistics Solutions

At FreightAmigo, we understand the transformative power of digital solutions in the logistics industry. Holcim’s success story with freight spend analysis resonates strongly with our mission to provide innovative digital logistics solutions that drive efficiency and cost-effectiveness for our clients.

Our Digital Logistics Platform offers similar capabilities to those leveraged by Holcim, enabling businesses of all sizes to:

• Gain comprehensive visibility into their freight spend across multiple carriers and modes of transport
• Analyze and compare door-to-door freight quotes for international courier, airfreight, sea freight, rail freight, and trucking solutions
• Track shipment status in real-time, connecting with more than 1000+ reputable airlines and shipping lines
• Streamline customs clearance, cargo insurance, and trade finance processes
• Automate shipment documentation, reducing manual errors and improving efficiency

By embracing digital solutions for freight spend analysis and management, businesses can achieve similar results to Holcim – increased cost competitiveness, improved operational efficiency, and strategic empowerment of their logistics teams.

Conclusion: The Future of Freight Spend Analysis in the Digital Age

Holcim’s journey demonstrates the immense potential of freight spend analysis when powered by advanced digital platforms. As the logistics industry continues to evolve, the ability to analyze and optimize freight spend will become increasingly crucial for maintaining competitiveness in the global market.

The success achieved by Holcim serves as an inspiration for companies across industries to embrace digital solutions for their logistics operations. By leveraging platforms that offer comprehensive freight spend analysis capabilities, businesses can unlock new levels of efficiency, cost-effectiveness, and strategic insight in their supply chain management.

As we look to the future, it’s clear that the integration of artificial intelligence, big data analytics, and digital platforms will continue to revolutionize freight spend analysis. Companies that adopt these technologies early and effectively will be well-positioned to navigate the complexities of global logistics and drive sustainable growth in an increasingly competitive landscape.

At FreightAmigo, we’re committed to being at the forefront of this digital transformation, providing our clients with the tools and insights they need to optimize their freight spend and achieve logistics excellence. By embracing digital solutions for freight spend analysis, businesses can not only reduce costs but also gain a competitive edge in the ever-evolving world of global trade.