Transport Price Benchmark for Negotiations and Supply Chain Analysis

Background
Transport represents a large share of the total logistics cost and therefore plays a big role when evaluating different supply chain scenarios. Many factors influences transport rates and it is difficult to predict how transport cost is changed for different supply chain footprints.
If we could estimate the transport cost impact for different scenarios in a better way we could be faster in finding improvements and strategic decision making. Benchmark rates would also be a powerful tool for strategic and tactical decisions throughout the entire logistics sourcing process. It will help us understand how competitive current rates are and if contracts should be re-negotiated or if an RFQ should be sent out. It will also give us a head start in negotiations and possibility to reduce time in the purchasing process. This enables us to faster give better service to our customer as well as reducing the logistics cost heavily.
Thesis questions and expected outcome
We would like the students study how road transport rates are impacted by different factors and review different bottom up transport rate calculation models. Data collection, processing and quality review would be relevant during this step of the process as well.
As output we would like to have a general process for calculating benchmark rates for our sourcing process that can be used for evaluating different supply chain scenarios for inbound transports as well as distribution of spare parts. A proof of concept that shows the possibilities with the process and model will also be a part of the output.
Student profile and application
Master students in Logistics or similar fields
For further information, please contact:
Name: Thomas Nordenskjöld
Title / Dept: Manager Advanced Analytics Europe
Phone: +46313225355, +46739025355
Mentors
Glenn Nilsson – Supply Chain Data Modeling Expert, Supply Chain Optimization
Daniel Vahlberg – Sourcing and Commodity Buyer, Logistics Purchasing

About Us

The Volvo Group is one of the world’s leading manufacturers of trucks, buses, construction equipment and marine and industrial engines under the leading brands Volvo, Renault Trucks, Mack, UD Trucks, Eicher, SDLG, Terex Trucks, Prevost, Nova Bus, UD Bus and Volvo Penta.

Volvo Group Trucks Operations encompasses all production of the Group’s engines and transmissions, as well as all production of Volvo, Renault and Mack trucks. The organization is responsible for spare parts supplies to the Group's customers as well as for designing, operating and optimizing logistics and supply chain for all brands, production facilities and distribution centers where the Volvo Group operates. In Volvo Group Trucks Operations you will be part of a diverse team of highly skilled professionals who work with passion, trust and embrace change to stay ahead. We make our customers win.

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