Dynamic Procurement
simulation tool
Context & objectives
A dynamic procurement team is responsible to perform simulations for cost reduction “ideation” and support buyers during negotiations with Ports and Terminals
To achieve ambitious yearly objectives, procurement is facing several pain points:
- Highly unstructured tariff data
- No centralized data & tools to gather all required information for simulation studies
- Important Lead time to perform simulations and consolidate results
- Hard to generate new dynamic procurement ideas /initiatives as the analysis remain manual and focused
STEP provided a support to the CPO to:
- Identify data Single Source of Truth
- Structure and clean cost and tariff data to prepare Data Product industrialization
- Ease ideation to support OPEXs reduction and reach yearly procurement savings objectives
- Define and set-up X-functions end-to-end process
Results
Procurement data cleaning at the requested granularity for different cost nature (~500M tariffs): stevedoring, inland transport, third-Party feeders, marine charges, …
Industrialization plan of Data Products at the requested granularity: cargo type (dry, reefer, …), cargo size (20’, 40’, …)
Cost optimization simulations on pilot cases with x0M$ of cost reduction opportunities identified. Perimeter:
- Inland Europe optimization (intermodal)
- Transshipment for North Europe & Mediterranean
Digital cockpit developed with access to CMA users on pilot studies for deep dive and validation at route level
Ideation End-to-End process defined between Procurement and Lines, including opportunities maturity gates and associated cross-functional routines
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