NUMBER 1 / ARTICLE 5 / 2020

Pon Equipment Heavy Freight

In the summer of 2019, we launched a study to investigate the transportation of heavy goods for all four divisions (New, Rental, Used and Service) of Pon Equipment Nederland. The study focused on combining volumes, possible synergies, cost savings and quality assurance. This article provides more information about the process and the results of this tender.

Diversity

We began the project by identifying the needs, wants and ways of working for each division. The carriers are truly an integral part of Pon Equipment’s service provision. We identified which companies handled the transportation for the various divisions and then determined the spend, the quantities of Pon orders/expenditures for these companies. Based on the results of this initial inventory, we decided to bring down the list of thirteen carriers to five.

Preferred suppliers

We compared this short list of five suppliers on a range of factors such as quality (performance), permits, duty of care (laws and regulations), financial stability (credit rating etc.) and of course the price. Each factor was assigned a weight beforehand, allowing the comparison to be based on the total scores for each carrier.

Finally, three carriers were selected as preferred suppliers. With these carriers, we expect to be able to complete all shipments at favorable terms and a good price. We now have a preferred supplier for each ‘lane’, though it is still possible to opt for one of the other preferred suppliers for commercial reasons. A fictitious example of the transportation menu would be as follows:

Evaluation

The rates went into effect as soon as the three companies were awarded the contract in March. From the contract effective date, these carriers will also submit monthly reports of completed freight orders and any damages/incidents. After approximately six months, the carriers and various divisions will conduct a comprehensive assessment.

In addition to deliveries of the right quality at a good price, the reports will allow us to keep even better track of all our shipments. A possible follow-up project is to further reduce ‘empty miles,’ lowering both the costs and CO₂ emissions.