INDUSTRIESCASE STUDIES
Consumer Goods & Retail
Reliable logistics depends on more than transport capacity; it depends on how that capacity is sourced, governed, and managed.
A leading FMCG company partnered with Cognitud to redesign its surface transport procurement, creating a more competitive sourcing model capable of supporting nationwide distribution while improving commercial efficiency and service reliability.
Finished goods moved through approximately 150 distribution centers using a fragmented transporter network with no structured annual rate agreements. Vehicle shortages, limited competition on key freight lanes, and manual sourcing processes increased procurement effort while affecting on-time deliveries. Vendor allocation lacked transparency, and heavy dependence on spot-market procurement exposed the business to pricing volatility during peak demand periods.
Finished goods moved through approximately 150 distribution centers using a fragmented transporter network with no structured annual rate agreements. Vehicle shortages, limited competition on key freight lanes, and manual sourcing processes increased procurement effort while affecting on-time deliveries. Vendor allocation lacked transparency, and heavy dependence on spot-market procurement exposed the business to pricing volatility during peak demand periods.
Cognitud restructured the transport sourcing strategy by combining commercial analysis with supplier market development. Freight spend was evaluated across regions, lanes, shipment patterns, and vehicle categories to identify sourcing inefficiencies and opportunities for lane aggregation. The supplier ecosystem was expanded through a structured qualification process, introducing additional regional and national transporters to improve market competitiveness.
A standardized sourcing programme established detailed service-level agreements, transparent commercial terms, and annual rate contracts incorporating fuel price indexation. Digital negotiations and reverse auctions replaced fragmented manual processes, while optimized lane grouping strengthened purchasing leverage and enabled supplier selection based on both commercial value and operational capability.
Cognitud restructured the transport sourcing strategy by combining commercial analysis with supplier market development. Freight spend was evaluated across regions, lanes, shipment patterns, and vehicle categories to identify sourcing inefficiencies and opportunities for lane aggregation. The supplier ecosystem was expanded through a structured qualification process, introducing additional regional and national transporters to improve market competitiveness.
A standardized sourcing programme established detailed service-level agreements, transparent commercial terms, and annual rate contracts incorporating fuel price indexation. Digital negotiations and reverse auctions replaced fragmented manual processes, while optimized lane grouping strengthened purchasing leverage and enabled supplier selection based on both commercial value and operational capability.
The sourcing programme significantly improved procurement efficiency and supplier competitiveness. Online negotiations were completed within 12 hours, substantially reducing sourcing cycle time, while the revised commercial strategy delivered approximately 16% cost savings through best-value annual agreements. The expanded supplier base reduced dependence on incumbent transporters, strengthened service continuity, and improved compliance with standardized operational and contractual requirements, creating a more resilient logistics procurement model.
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