Recently sky-rocketing tariffs are not news for most in the fruit and vegetable sector. However, many fresh produce companies are focused on getting their goods out every day.
According to Wim Meiling, they often do not have time to closely consider their logistics process and network as a whole and thus cannot see if it needs to be optimized.
That's why he founded Tarieven Specialist, a Dutch consulting firm specializing in logistics and transportation of temperature-sensitive products.
"I've always been involved in logistics for companies. It's always been challenging to analyze their logistics rates to see if it can be done smarter and better. For example, by setting up new logistics networks or simply reducing costs. I have more than 30 years of FMCG experience, and so offer that knowledge and logistics network," Wim says.
"There are some basic questions I can answer. What should transport cost from A to B? And what are you paying for? Although rates have cooled down slightly, there are significant challenges ahead for companies. Just consider energy prices. Carriers apply their diesel clause, but producers often deal with annual contracts."
"And the supermarkets aren't keen to change these midway through. There are logistical challenges in the coming years too - switching to zero-emission and filling vacancies in the entire logistics chain. Producers will have to start organizing their logistics differently because there are already signs that logistics service providers are struggling to maintain service levels," Wim continues.
Potato processor
"We, for example, realized huge savings for a potato processor on transport to southern England. That region has large remote areas, especially in the southwest. Detailed distribution is therefore very expensive. The order figures analysis showed that customers ordered about three to 3.5 times per week. However, sometimes clients who were geographically close together ordered on different days."
"The trucks, thus, sometimes passed through the same areas every day. We made several adjustments. For instance, these nearby companies started clustering orders from five to three times a week, which meant fewer deliveries and, therefore, less transportation. At the same time, the trucks' load factor increased, and the price per transported CE decreased considerably," Wim explains.
For a fixed amount of €1,500, he will quickly scan fresh produce companies' current logistics rates. "This analysis can offer potential savings. I want to be as transparent as possible and show exactly which steps could lead to savings. Sometimes, it shows that a company's rates are in line with the market."
"In that case, we congratulate the company and leave it at that. If, in consultation with the companies, we decide to realize the savings, they receive a credit for the quick scan's cost. Then we agree on how to proceed. That can be, say, on an hourly rate, but also on a no cure, no pay basis."
"I do most of my work in the Benelux and Germany, where my strengths lie. But, I can also benchmark the rates for the other countries. Plus, I have an overseas network, so we can issue container transport rates for all major global ports. If required, we can negotiate tender projects for companies. And, we can closely consider the entire production process and logistics network. This integral approach ensures up-to-date rates and processes," Wim concludes.
For more information:
Wim Meijling
Tarieven Specialist
Mob: +31 (0) 657 551 807
Email: [email protected]
Website: www.tarievenspecialist.nl