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How can you use data analysis to inform your transportation contract negotiations?

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Transportation is a major cost factor for warehouse operations, and negotiating contracts with carriers can be challenging and time-consuming. However, by using data analysis, you can gain valuable insights into your transportation needs, performance, and opportunities, and use them to inform your negotiation strategy. In this article, we will show you how to use data analysis to inform your transportation contract negotiations in six steps.

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Amr EzzEldin

Inventory Control Manager at Floward ???? - Expert in Data Analysis,(S&OP)Planning and Process Improvement. Ex-…
TARIQ ZAMAN

Logistics & Warehouse Strategies for Agile, Efficient Supply Chain & Inventory Optimization
Razak Adams

LOGISTICS ASSOCIATED TEAM LEAD

1 Define your goals

Before you start analyzing data, you need to define your goals for the negotiation. What are your priorities, expectations, and constraints? What are the key performance indicators (KPIs) that you want to measure and improve? For example, you may want to reduce your transportation costs, increase your service levels, optimize your routes, or enhance your sustainability. By defining your goals, you can focus your data analysis on the relevant aspects of your transportation operations.

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Amr EzzEldin

Inventory Control Manager at Floward ???? - Expert in Data Analysis,(S&OP)Planning and Process Improvement. Ex- Vodafone Al Futtaim | My motto: Maximize performance, minimize losses.
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In my experience, one of the best methods to get more savings is the drop point and how to plan your route in a way that allows you to do more than a trip by one car in same route so less cars less hassle more savings in both money and time

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Razak Adams

LOGISTICS ASSOCIATED TEAM LEAD
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identify your goals,2, collect and analyze relevant data,3, prepare and present your proposal,4, negotiate and finalize the term.

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Deepak Chaudhary

Inventory Management | Warehouse Operations | Logistics Professional | CIFFA?
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What to load ? Where to load ? When to load ? How to load ? Above are the question carrier or fleet owner concerns about , if our answers match with their questions, every questions has a carrier answering to that particular question , we just need to contact the right carrier for right consignment.

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Thomas Sihlangu

Visionary Leader | Innovator | Driving Excellence in EV Controller ?? | Empowering Change, One Step at a Time | ?? Global Citizen | ?? Connector of Ideas & People | ?? On a Mission to Inspire Greatness.
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To use data analysis in transportation contract negotiations: 1. Analyze historical transportation data to identify trends and insights. 2. Identify cost drivers and benchmark against industry standards. 3. Evaluate carrier performance metrics for negotiation leverage. 4. Optimize shipping routes and consolidate shipments to reduce costs. 5. Negotiate volume-based discounts and flexible contract terms. 6. Conduct scenario analysis to assess negotiation outcomes. 7. Monitor and optimize contracts continuously for cost-effectiveness.

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Eduardo Castro

Logístico Formado em Processos Gerenciais e Pós Graduado em Engenharia de Produ?ao. Gest?o de estoque | PCP | Logística reversa | ESA (Food Defense) | Palestrante | MRO | Backoffice. ????????????????????
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Análise de dados é o processo de aplica??o de técnicas estatísticas e lógicas para avaliar informa??es obtidas a partir de determinados processos. O principal objetivo da prática é?extrair informa??es úteis a partir dos dados.

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2 Collect and organize data

The next step is to collect and organize data from various sources that relate to your transportation operations. These may include internal data from your warehouse management system (WMS), external data from your carriers, third-party data from market benchmarks, and customer feedback. You need to ensure that the data is accurate, complete, and consistent, and that you have access to historical, current, and projected data. You can use tools such as spreadsheets, databases, or business intelligence software to organize and store your data.

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Eduardo Castro

Logístico Formado em Processos Gerenciais e Pós Graduado em Engenharia de Produ?ao. Gest?o de estoque | PCP | Logística reversa | ESA (Food Defense) | Palestrante | MRO | Backoffice. ????????????????????
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Com o volume de dados em constante crescimento, empresas e organiza??es est?o investindo em profissionais da área para ajudá-las a reunir, analisar e interpretar informa??es valiosas.

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3 Analyze and visualize data

Once you have collected and organized your data, you need to analyze and visualize it to identify patterns, trends, gaps, and opportunities. You can use different methods and techniques to analyze your data, such as descriptive, diagnostic, predictive, or prescriptive analytics. You can also use tools such as charts, graphs, dashboards, or reports to visualize your data and make it easier to understand and communicate. For example, you can use data analysis to compare your transportation costs, service levels, and efficiency with your carriers and the market, and identify areas where you can improve or negotiate.

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Eduardo Castro

Logístico Formado em Processos Gerenciais e Pós Graduado em Engenharia de Produ?ao. Gest?o de estoque | PCP | Logística reversa | ESA (Food Defense) | Palestrante | MRO | Backoffice. ????????????????????
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A análise de dados é o processo de aplica??o de técnicas estatísticas e lógicas para avaliar alguns tipos de informa??es. Esse processo compreende a inspe??o, investiga??o, armazenamento e acompanhamento de informa??es em formato de dados para obter novos conhecimentos.

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Calili dos Santos Silva

Data Engineer @ XP Inc. | Data Science | Machine Learning Engineer | Python | SQL | R | Spark | Databricks | DevOps
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A análise é por vezes a etapa mais "bra?al" da entrega, mas é ao mesmo tempo fundamental para acurácia, qualidade e impacto dos resultados. Trash in trash out. A análise é o que garante a "faxina dos dados".

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4 Develop scenarios and options

Based on your data analysis and visualization, you can develop scenarios and options for your transportation contract negotiations. You can use data analysis to simulate different scenarios and outcomes, such as changing your transportation modes, volumes, frequencies, or lanes, and evaluate their impact on your costs, service levels, and efficiency. You can also use data analysis to generate options and alternatives for your negotiation, such as different rates, terms, incentives, or penalties, and assess their feasibility and attractiveness.

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Eduardo Castro

Logístico Formado em Processos Gerenciais e Pós Graduado em Engenharia de Produ?ao. Gest?o de estoque | PCP | Logística reversa | ESA (Food Defense) | Palestrante | MRO | Backoffice. ????????????????????
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A?constru??o?e o gerenciamento de?cenários?s?o métodos importantes e amplamente utilizados no acompanhamento de processos de planejamento, e, com base em suas proje??es, s?o efetuados ajustes e corre??es nesses processos com o intuito de se alcan?ar metas e tra?ar objetivos de maneira satisfatória.

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5 Prepare and execute negotiation

Using your data analysis, scenarios, and options, you can prepare and execute your negotiation with your carriers. You can use data analysis to support your arguments, proposals, and counteroffers, and to demonstrate your value proposition and expectations. You can also use data analysis to monitor and evaluate the negotiation process and progress, and to adjust your strategy and tactics accordingly. You can use tools such as negotiation checklists, templates, or software to facilitate and document your negotiation.

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Eduardo Castro

Logístico Formado em Processos Gerenciais e Pós Graduado em Engenharia de Produ?ao. Gest?o de estoque | PCP | Logística reversa | ESA (Food Defense) | Palestrante | MRO | Backoffice. ????????????????????
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O ML é o processo no qual um computador aprende a interpretar dados, tomar decis?es e fazer recomenda??es com base nesses dados. Dados incorretos, tendenciosos ou incompletos podem resultar em previs?es imprecisas durante o processo de aprendizagem e posteriormente, quando usados efetivamente para fazer previs?es.

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6 Review and improve performance

After you have negotiated and signed your transportation contract, you need to review and improve your performance. You can use data analysis to track and measure your KPIs, and to compare your actual performance with your contract terms and goals. You can also use data analysis to identify and resolve any issues, disputes, or deviations, and to provide feedback and recognition to your carriers. You can use tools such as performance reports, scorecards, or audits to review and improve your performance.

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Sivakumar velayudhan

Feed milling and Engineering expert
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Data Analysis helpful to find out performance of the following and results of these data useful for further negotiations, improve service efficiency and incentive fixation. 1.Transport contractor wise reports 2.Driver wise reports. 3. Item(material)wise. 4.Cost per running KM, cost per Ton ,Cost per one piece etc. 4. DELIVERY reports, Run time comparisons, 5. Loading time and unloading time reports are also important.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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TARIQ ZAMAN

Logistics & Warehouse Strategies for Agile, Efficient Supply Chain & Inventory Optimization
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Evaluate factors like on-time delivery, shipment accuracy, and overall reliability. Identify cost drivers and potential areas for optimization or negotiation. Use data to negotiate volume-based discounts or incentives. Use performance data to negotiate or refine service level expectations. Use this information to negotiate terms that address or mitigate risks. Negotiate better terms by showcasing the potential for increased business. Use this data in negotiations or consider fuel surcharge agreements. Negotiate terms that align with your technological integration requirements. Use ongoing data analysis to identify areas for continuous improvement. Negotiate contracts that accommodate changing business dynamics.

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Ericsson E.

ESG| Circular Economy | Supply Chain Sustainability.
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Data analysis commutates figures/numbers. These can be visualized and can be used to communicate and evaluate outputs using numbers since numbers do not like. Data analysis will surely communicate performance without bias just imagine what techniques like power BI can do if wel used in the transportation-contracting industry.

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How can you use data analysis to inform your transportation contract negotiations?

1

2

3

4

5

6

7

1 Define your goals

2 Collect and organize data

3 Analyze and visualize data

4 Develop scenarios and options

5 Prepare and execute negotiation

6 Review and improve performance

7 Here’s what else to consider

Warehouse Operations

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How can you use data analysis to inform your transportation contract negotiations?

1

2

3

4

5

6

7

1 Define your goals

2 Collect and organize data

3 Analyze and visualize data

4 Develop scenarios and options

5 Prepare and execute negotiation

6 Review and improve performance

7 Here’s what else to consider

Warehouse Operations

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感谢您的反馈

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