Cargill Using e-Sourcing Solution to Drive Transportation Savings in Europe

Global food giant selects Verticalnet to optimize its freight network on continent through collaborative bid collection

Global food giant selects Verticalnet to optimize its freight network on continent through collaborative bid collection

Malvern, PA  December 19, 2005  Agribusiness giant Cargill has tapped a sourcing solution from Verticalnet as part of an initiative to drive transportation sourcing initiatives across Europe and optimize its freight network on the continent.

Cargill is using Verticalnet's on-demand Advanced Sourcing Solution and category expertise, and the company already has completed a number of sourcing projects with Verticalnet in key areas such as bulk liquid transportation in Europe and sourcing dry van shipments in the United States.

The new transportation strategic sourcing project, which began this month, is focused on optimizing millions of euros of spend for packaged goods truckloads across thousands of lanes in Europe, with more than 120 carriers.

According to Verticalnet, privately held Cargill selected Verticalnet over other software providers and their existing sourcing platform because of the transportation expertise built into the Verticalnet Advanced Sourcing Solution.

An additional factor in the selection was Verticalnet's expertise in supporting sourcing initiatives across both North America and Europe. The market for transportation is continually characterized by ever-rising costs due to fuel price increases and constrained capacity across all modes, necessitating that companies look beyond traditional, price-focused reverse auctions for transportation.

"This project is beyond the limits of our normal e-sourcing optimization platform," said Martin Verploegh, Cargill's European procurement manager. "With the Verticalnet Advanced Sourcing Solution, we expect to see improved carrier performance in all our transportation routes and suppliers across Europe, while improving our overall cost control."

Verploegh said that as Cargill uncovers previously untapped transportation economies, the company is confident that it will be able to save money and provide a more attractive performance award package for carriers. He concludes: "The new transport management model will create a higher distinctive value for our internal and external stakeholders while harmonizing quality standards and leveraging best practices across Europe and our supply chain."

Additional Articles of Interest

 How can you beat the trends and lower your less-than-truckload costs, even in a seller's market? For a guide to help you get started, read the article "LTL Sourcing: Success for Buyers in A Seller's Market."

 Freight capacity and transportation budget pressures continue to hound transportation managers. But savvy companies have discovered how to fight back. Read more in The Analyst Corner column in the August/September 2005 issue of Supply & Demand Chain Executive.

 Looking for the best carriers for your organization? Here are seven tips to help you on your way. Read the exclusive, "Need Capacity? Get Flexible."