Home/SSAB took control of freight sourcing and contracts with Pagero TMS
SSAB took control of freight sourcing and contracts with Pagero TMS2018-12-21T10:00:14+00:00
SSAB took control of freight sourcing and contracts with Pagero TMS
Coordinating road transport procurement
SSAB Nordics took a comprehensive view when it decided to coordinate its road transport procurement with Ruukki, a newly acquired Finnish company. The joint solution from TenderEasy and Pagero TMS enabled an extensive procurement process in a very short time and ensured that the result – reduced freight costs – would carry on during the term of contract.
The solution was used for the first time to take control of the freight sourcing and contracts used for the companies’ truck-based export flows. The project team was staffed by employees from both Sweden and Finland who worked together to define the requirements on their future suppliers. With local knowledge of each unit’s requirements on its freight solution, quality was assured in the choice of suppliers, while using a shared procurement process and approach.
Less manual work with a user-friendly procurement system
For SSAB, this was a substantial and comprehensive procurement, and the company was looking for a system that would eliminate manual, highly time-consuming work. TenderEasy was chosen for its user friendliness, both with regard to SSAB and the transport companies, and the project team only needed a short training session to use the system. The tender templates were prepared in TenderEasy, together with all important information that the transport companies needed.
A web-based startup meeting was held with all participating transport companies. At the meeting, they were introduced to the procurement and SSAB’s requirements, and they were instructed in how the tender templates should be completed. The transport companies then submitted their tenders through the system, allowing SSAB to review, compare and analyse tenders from many different suppliers in a simple and repeatable manner.
”We wouldn’t have been able to carry out such an extensive procurement with such a large number of suppliers without support from the system.”
The procurement was carried out with several tendering rounds, meetings with suppliers and final negotiations. Approximately 40 supplier meetings were held in 30 days.
”As a procurement system, TenderEasy worked very well for us,” says Roger Lindgren, Transport Sourcing, SSAB. “We wouldn’t have been able to carry out such an extensive procurement with such a large number of suppliers without support from the system. Naturally, the fact that TenderEasy can make comparisons quickly and smoothly made things a lot easier for us. It was easy to give the suppliers feedback on their results between tendering rounds. The ability to do so for all flows and tariffs was incredibly valuable.”
Advanced invoice control ensures that agreements are followed
When the procurement was concluded, it was easy to import the new transport agreements into Pagero TMS, as the tender templates used in the procurement were compatible with Pagero TMS right from the start.
All freight invoices are checked continuously and automatically in Pagero, against both shipment information and price agreements. SSAB just needs to review and take action in case of deviations. Combined with Pagero, the new contracts have made it possible to ensure that the right price is paid for freight transports. All deviations surface automatically, with minimal input from staff.
“With the help of Pagero TMS, our aim is to ensure that the agreements we have negotiated are followed,” says Maria Weibull, Unit Manager Logistics, SSAB Special Steel. “Also, Pagero gives us the support we need to analyse our freight costs historically. The system allows us to break down costs so that we can identify any additional potential for improvement before the next procurement.”
”Pagero TMS gives us the support we need to analyse our freight costs historically.”
Reduced costs x 2
By using Pagero TMS for invoice control and TenderEasy for procurement, SSAB aims to automate and optimize its freight service process, from purchasing to payment. That means getting better control of how costs arise and how they are distributed internally. Costs savings have also been achieved through both efficient procurement and automatic invoice audit.
SSAB is a highly specialised, global steel company. The company is a leading producer on the global market for Advanced High Strength Steels (AHSS) and Quenched & Tempered Steels (Q&T), strip, plate and tubular products, as well as construction solutions. SSAB’s production plants in Sweden, Finland and the US have an annual steel production capacity of 8.8 million metric tons.