A UK-based multinational leveraged Falsum’s Customs Analytics Tool (CAT) to review, assess and benchmark their Third-Party Logistics providers & Customs Agents. The Customs Analytics Tool provided the Head of Supply Chain, Logistics Director and Head of Procurement with data-driven insights on which providers were overcharging, underperforming or contributing to additional costs. Through implementation of the CAT outputs, the multinational has realised over £1.1m in cost-savings over a 9-month period.
The Challenge
A UK-based multinational (“The Trader”) approached Falsum looking to review their relationship with their Customs and Logistics service providers.
For 2 years, the Trader worked reactively with existing suppliers to ensure Business Continuity in the face of Brexit and COVID-19. However, Senior Leaders within the business began to feel that there was an imbalance in those relationships. The Trader wanted a data-driven approach to define KPIs relating to Customs and Imports, and to identify those suppliers who were fundamentally underperforming.
There were a number of push factors in deciding to implement the Transport & Agent Review:
- Market-wide cost pressures & a wish to preserve margin
- Sub-contracting within Haulier relationships & lack of visibility
- Finance processing unexpected Customs Duty & Import VAT values
- A feeling of ’embedded’ suppliers & lack of internal business control
- Low business knowledge on how to KPI Customs Agents
Falsum proposed a full Supply Chain analysis using the Customs Analytics Tool (CAT).
The Falsum Solution
Falsum’s Customs Analytics Tool (CAT)is purpose designed to present clear, thematic Dashboards designed to mirror Trader’s functional teams and their business interests. CAT Dashboards support Supply Chain, Procurement, Finance and General Management professionals in identifying opportunities to save costs and drive value across the organisation.
The CAT is designed to review, assess and benchmark all Third-Party Logistics providers & Customs Agents. The Customs Analytics Tool provided the Head of Supply Chain, Logistics Director and Head of Procurement with data-driven insights on which providers were overcharging, underperforming or contributing to additional costs.
The CAT’s proprietary KPIs identified the lowest performing 20% of Suppliers who accounted for over 70% of all additional or unnecessary Customs cost-base.
The Result
Through the implementation of the Customs Analytics Tool’s recommendations, the multinational has realised over £1.1m in cost-savings over a 9-month period.
Savings were a result of direct and indirect savings; reduced haulier fees, a 96% reduction in demurrage charges, Customs Duty & Import VAT, reduced supply-chain delays, and an informed position to re-negotiate Logistics Framework Agreements.
