Global Leader in

Oil & Gas Transmission

KEY TRANSPORTATION MODES:

Ocean, Rail, and Truckload

Challenge:
  • Large global steel pipe sourcing event without logistics participation
  • Total logistics spend = ~$90M
  • No logistics category strategy in place
  • Organizational talent gap
Solution:
  • Created transparency within existing logistics costs across all suppliers
  • Built detailed cost model for entire logistics chain from origin mill to destination pipe yard
  • Executed a global logistics strategic sourcing initiative to determine market pricing
  • Deployed team to manage RFP, analyze bid results, and execute negotiations
Results:
  • Saved $22M in logistics costs
  • Identified $10.5M of costs missing from the sourcing evaluation
  • Instituted a robust logistics category strategy and negotiation process
  • Established cost baseline for all future projects