About the Client

A leading manufacturer in the building-materials sector with a widespread distribution network across India. The company supplies insulation, roofing solutions, and allied construction materials to dealers, industrial consumers, and regional stock points. With multiple dispatch lanes operating simultaneously, logistics contributes a significant share to their landed cost – making transportation efficiency a direct value lever to improve profitability and service delivery.
Their distribution model requires consistent movement of material across short-haul and long-haul routes. As procurement volumes grow, the need for structured rate discovery, scalable vendor participation, and real-time benchmarking becomes critical for supply continuity and cost control.
The Challenges

Despite substantial dispatch volumes, the transport contracting process was largely traditional and dependent on manual coordination. Key pain points included:

  • Scattered transporter quotations leading to inconsistent evaluation
  • Limited visibility on market-competitive freight rates
  • Manual negotiations stretching over multiple discussion rounds
  • Delays in award decisions due to fragmented comparison and documentation
  • High landed logistics costs caused by static rate contracts
  • Difficulty in standardizing pricing across different routes and vendors

The procurement team needed a faster, transparent and data-driven mechanism to finalize lane-wise contracts - one that could bring all transporters to a single bidding environment and identify the most competitive rate in real time.

The Solution - TransportTek Route-Wise Reverse Auction

TransportTek implemented a dynamic reverse auction, structured route by route, enabling qualified transporters to bid live for allotted lanes.

Key execution elements included:

  • Route-wise bid configuration with auto-ranking for transparent competition
  • Controlled bid decrements to maintain discipline and bid progression
  • Per-trip pricing visibility for instant decision-making
  • Real-time participation from empaneled transporters across multiple lanes
  • Audit-ready bid trails and downloadable commercial summaries
  • Ability to award/close routes in a single event window

Within one session, procurement teams were able to benchmark pricing, evaluate competitiveness, and finalize transport contracts efficiently, backed by complete traceability and digital proof of participation.

Result & Impact

The outcome was swift and measurable:

Metric Achieved
Auction Duration 60 minutes
Cost Savings 9.47% Reduction from prior landed rates
Starting Price ₹850/MT
Winning Bid ₹535/MT
Auction Type Route-wise Reverse Auction

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