ILOS points to savings of R$260 million per year in a multinational construction materials company
In a Brazilian scenario of changes in the regulation of transport activities, ILOS carried out a project for a multinational company in the construction materials sector, reducing the risks of its operation and increasing its attractiveness in the freight contracting market.
In addition to mapping the entire transport operation and conducting a survey of the company's transporters, ILOS used its Should Cost methodology to compare the prices paid by the multinational and the real cost of the transporters.
Among the recommendations made, the ILOS suggested reviewing the freight paid on certain routes, changing the payment term, dedicating vehicles to certain operations, developing cross-subsidized contracts, creating circuits with other shippers and opening of an internal carrier.
The ILOS recommendations resulted in cost avoidance of more than R$260 million per year, and would avoid fines and tax and labor liabilities. Also noteworthy is the increase in the company's competitiveness in the freight contracting market.
With a team specialized in consulting in the transportation segment and vast experience in optimizing logistics operations, ILOS can help companies improve their transportation contracting strategy.
project type
- transport strategy
Segment
- Base industry
ILOS indicates cost avoidance of more than R$260 million per year in a multinational construction materials sector
Challenge
In a scenario of changes in the regulation of the transport activity, the company wanted to increase its competitiveness in the freight contracting market and reduce its operational vulnerability.
ILOS solution
The ILOS recommendations included the readjustment of freight paid on specific routes, the opening of an internal transport company and the review of the contracting and payment model for logistics service providers.
Results
- The recommendations proposed by ILOS indicated a potential cost avoidance of more than R$260 million per year, in addition to a guarantee of the sustainability of the company's transport operations.
