Russia and Ukraine

A large scale FMCG company chose the TNX platform for their spot procurement in Russia and Ukraine. Spot pricing in these areas can be challenging because of the extreme variability in regional coverage, seasonality, and currency inflation.

Challenge

Like most shippers, the customer saw contracted rates as the norm and ideal procurement structure. But spot capacity was still needed at significant scale. The team was already using a leading TMS solution for their spot procurement, essentially running auctions for spot shipments with their approved carriers. This gave the impression of finding the lowest rate, since carriers had to bid and the lowest bid was awarded the shipment. Yet they were interested to see what data science and behavioural profiling of the carriers could achieve.

Solution

The roll out was achieved in under 12 weeks across hundreds of carriers. Various transport flows, including raw material inbound, tier-1 production to DC, tier-2 to customer, and even return transport were in scope. Within 4 months, all spot procurement of any road transport was included. In this setup the trigger was a rejection of the preferred contracted carrier booking or the appearance of a shipment with no contracted preferred carrier. In both cases the shipment then flowed to TNX's platform for automated spot procurement.

Results

Truly enormous savings was achieved compared to previous spot rates, and even compared to contracted rates. Carriers understood and adopted the new process without issues. Internal staff time at the shipper was saved because they eliminated several manual steps.