Schneider Electric Empowers Ocean Freight Efficiency

Revolutionizing Ocean Freight Efficiency

Schneider Electric's Global Supply Chain team encountered their most complex tender to date between November 2021 and February 2022. Amid capacity limitations, skyrocketing container prices, and market volatility driven by the war in Ukraine and the operational challenges of the COVID-19 pandemic, Schneider Electric recognized the need for an advanced sourcing solution. The company allocated a budget to enhance their technology stack and effectively manage the complexity of the event.

To remain competitive amidst rapid changes in the supply chain, Schneider Electric aimed to find a sourcing solution that could handle advanced calculations and consider constraints related to awarding criteria, all while maintaining a consistent dataset. They sought the ability to create multiple scenarios to optimize their sourcing events, increase productivity, and mitigate cost inflation.

Additionally, they needed to split awards for over 5,000 lanes to ensure capacity and select suitable backup suppliers across various container types and origin-destination pairs.

Keelvar's Sourcing Optimizer solution proved to be the ideal choice for Schneider Electric. It offered powerful features that improved data quality and consistency, enabling the company to run optimal scenarios and build new ones as needed. Schneider Electric benefited from Keelvar's efficient system for manipulating data, optimizing sourcing events, and mitigating cost inflation, thereby generating significant cost savings.

Schneider Electric valued the assistance that Keelvar's knowledgeable customer success and professional services teams provided in addition to the solution itself. The dedicated assistance made a noticeable difference, as the team went above and beyond to address Schneider Electric's needs and ensure successful implementation.

Through their collaboration with Keelvar, Schneider Electric achieved remarkable outcomes. They saved millions in their most recent event, reducing costs by approximately 60%.

Moreover, they significantly reduced their supplier count, streamlining their operations by around 30%. The chosen scenario involved working with seven suppliers, and Schneider Electric conducted four rounds of bidding within a tight two-month timeframe, showcasing their ability to handle substantial bidding activity efficiently.

Schneider Electric also benefited from the flexibility to run multiple scenarios in a short period further contributed to time savings.

“The dedication and commitment provided to us have been to a level where it's really making a difference. Sometimes large organizations do not give you the same attention.” - Johan Henry, Global Ocean Category Manager, Schneider Electric

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