| Establish a baseline cost: | Time Table | ||||||||
| 1) Establish point of contact at each shipping location. | 1 weeks | ||||||||
| 2) Gather initial information from site point of contact. This should include major traffic lanes (origin and destination), carriers used, point of contact at carrier, and established rates. | 2 weeks | ||||||||
| 3) Collect traffic reports from carriers. | 2-3 weeks | ||||||||
| 4) Collect freight bills. | 2 weeks | ||||||||
| 5) Determine mode used and service level, i.e., international air heavy weight, full truck load, LTL, small package - domestic ground/air, overnight, 2 day, 3 day, international. | 2 weeks | ||||||||
| 6) Per mode used, determine lane, avg weight per month per lane shipped, cost per lb/kilo per lane, brokerage fee per shipment, transit time per lane. | 2 weeks | ||||||||
| Total time to establish a baseline cost | 3 months | ||||||||
| RFQ per mode: | |||||||||
| 1) Once base line is established, determine the carriers that should be included in the RFQ. Get shipping site recommendations. | 1 week | ||||||||
| 2) Type and send out RFQ | 1 week | ||||||||
| 3) RFQ returned from carriers. | 2 weeks | ||||||||
| 4) Responses reviewed. Gather any missing information from carrier. | 1 week | ||||||||
| Total time to send out RFQ and RFQ returned | 1 month | ||||||||
| Carrier Selection: | |||||||||
| 1) Top carriers selected to make a presentation to logistics panel (panel should include traffic manager representatives from all shipping locations). | 1 week | ||||||||
| 2) Carriers rated by logistic panel. | 2 weeks | ||||||||
| 3) Selection limited to top 2 or 3 carriers. | 1 week | ||||||||
| 4) Logistics panel schedule on-site visit to top carrier operations and final selection made. | 1 week | ||||||||
| 5) Contract signed. | |||||||||
| Total time for Carrier Selection | 1 month | ||||||||
| Implementation: Carrier implements one lane every 2 weeks | |||||||||