About Client:
A trusted and well-established manufacturer of cooking oils and dal products with a strong distribution footprint across South India. The company operates multiple production units and an extensive logistics network to supply essential FMCG products across markets. To maintain high service quality and competitive pricing, optimizing transportation and freight procurement is a critical operational priority.
Business Challenges
Despite their industry experience and strong vendor base, the organization faced several logistics procurement challenges:
- High Transportation Costs: Freight rates fluctuated due to market volatility, fuel variations, and inconsistent vendor quotes.
- Manual & Time-Consuming Negotiations: Traditional negotiations involved multiple rounds, scattered communication, and lacked structured benchmarking.
- Limited Visibility Across Routes: Lack of real-time insights into transporter participation and price competitiveness reduced the ability to secure best-market rates.
- Slow Monthly Freight Award Cycles: Manual comparison of multiple route-wise quotes delayed monthly closures, affecting dispatch schedules.
- Rate Variations Across Transporters: Different transporters quoted inconsistent rates for the same lane, making comparison difficult and increasing the risk of overspending.
- Limited Historical Benchmarking: The absence of a unified digital system made it difficult to compare current rates with previous cycles, affecting negotiation leverage.
Solution: TransportTek’s Digital e-Negotiation Platform
The client adopted TransportTek to streamline their transportation procurement process and bring clarity, transparency, and speed into their monthly logistics awards.
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TransportTek enabled live, competitive bidding between verified transporters, ensuring fair and transparent rate discovery.
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Real-time ranking and structured bid reductions allowed procurement teams to evaluate prices instantly.
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Logistics routes were systematically organized by region and requirement, creating efficient bidding clusters.
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Every bid, action, and update was recorded, supporting compliance, audit readiness, and decision clarity.
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TransportTek offered lane-wise analytics and historical price comparison, helping the procurement team make confident, data-driven decisions.
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The platform connected the client to a pre-verified base of credible transporters, improving reliability and reducing operational risks.
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Instant downloadable reports simplified internal approvals and supported compliance documentation.
Results Achieved:
TransportTek delivered tangible and measurable savings for the client in a single transportation e-negotiation event.
Auction Performance Overview:
Start Value: ₹88,00,000
Final Value: ₹74,80,000
Total Savings: ₹13,20,000
Savings Percentage: 15%
Outcome Highlights:
- Significant Cost Reduction:Achieved 15% savings through structured competition and transparent bidding.
- Faster Award Closure:The transport award process was completed much faster compared to manual negotiations.
- Higher Transporter Engagement:Verified transporters actively participated due to clear rules, real-time ranking, and transparent bidding.
- Standardized Monthly Procurement:Consistent digital events have now become the client’s preferred method for freight finalization.
- Increased Transparency & Trust:The digital audit trail enhanced trust across finance, operations, and leadership by offering full visibility into every bid and action.
- Reduced Manual Errors:Automation replaced spreadsheets, eliminating calculation mistakes and ensuring accurate rate comparison.
- Scalable for Future Categories & Regions:The client recognized TransportTek as a scalable platform that can be extended to additional lanes, clusters, and even new product categories.
Conclusion
By leveraging TransportTek’s intelligent transport e-negotiation system, the client successfully optimized logistics costs, enhanced vendor participation, and established a faster, more transparent transportation procurement process. The results - ₹13.2 lakhs in savings and a 15% rate reduction in a single event clearly demonstrate the power of digital procurement in transforming traditional logistics negotiations.
The event delivered instant ROI, with the savings far exceeding the internal effort and time invested. This success also laid a strong foundation for the client’s broader digital transformation, proving that modernizing transport procurement can deliver immediate and measurable value.
Moreover, the results showed that the model is highly replicable across multiple plants and distribution clusters, enabling consistent cost optimization across the client’s network. Transporters - now exposed to transparent, competitive bidding also improved their pricing discipline, contributing to long-term vendor performance enhancement.
Overall, this single digital auction not only delivered significant financial benefits but also strengthened the client’s strategic roadmap for scalable, data-driven, and future-ready logistics procurement.
