SCMO advises VALE INCO

PT VALE INCO in Indonesia needed help to prepare tender documentation and create a contract document. They also required support through the tender management process.

The tender was for the yearly transportation of 5,000 TEUs and 10,000 Tons of bulk sea freight, 2,000 Tons of air freight, and 30,000 CBM of trucking for the sustenance of both the mining activities and the 5,000 person city built around the mine in the middle of the jungle.

Our advisor flew to the site to collect the necessary data to prepare the RFQ. We accompanied the client during the entire tender process and delivered a state-of-the-art contract document that the chosen subcontractors signed.

SCMO advises XENA SECURITY

SCMO assisted XENA SECURITY with their transportation in Hong Kong and Europe.

One of our assignments with XENA was when they had a delay in production, which resulted in an emergency shipment by air-freight for quite a number of sea-freight containers. This resulted in a volume not far from 100 Tons, which could either justify to charter a very large plane or call us for help. So they called us.

We put this volume to tender. Not only had the shipments to be sent in a very short time frame, but we also had very little time to organize it. We invited the largest freight forwarders specialized in air-freight, who already have huge volumes of air-freight cargo, work with many airlines, and also are very familiar with chartering planes, when necessary.

The result of this tender was excellent, lucky, and opportunist. One of our bidders was ready to give XENA a very competitive rate, due to volume/ weight optimization with other cargoes they already had for that shipment's period of time. Considering the rate they had already charged their other customers for this shipment, they would then increase their margin tremendously, and were ready to give us a large share of it...

We therefore helped XENA optimize to the best possible way possible, both in terms of service quality, respect of delays & transit-time, as well as cost. This helped them not lose all their margin on that shipment, which was originally due to be shipped by sea-freight.

SCMO advises UNIROSS

UNIROSS called SCMO due to an emergency in summertime. They had discovered that heat was shortening their products' lifespan and needed a temperature controlled logistics platform immediately. We decided to implement an outsourced logistics solution.

While such a project should normally take 3 months, we achieved it over a strict timetable of 1 month time. SCMO delivered its client a state-of-the-art temperature controlled logistics platform, with a long-term valuable partner, and at a cost US$ 300,000 per year lower than the market's benchmark.

Then UNIROSS had its freight volumes traditionally bought by the buying department and decided to give it to the shipping department to handle. As it was not specialized in tendering its 5,000 TEUs FCL & 800 CBM LCL sea freight and 1,000 Tons air freight, the shipping department called SCMO for help.

We chose the best season to invite both the existing subcontractors and other chosen potential partners, specialized in the concerned trades. We led and managed the tender to a strict timetable.

As a result, better quality of service was offered, one of the existing partners remained, while a new partner joined the company as a subcontractor, and SCMO helped the company save US$ 3 million of pure profit in the outsourced tendering process.

UNIROSS was so satisfied with the savings we helped them to generate with international transportation that they asked us to help optimize the costs of their regional European logistics & distribution. We were able to evaluate possible savings thanks to our benchmarking expertise.

We helped the company reorganize its 5 logistics platforms, which resulted in optimized costs savings of EUR 2 million. We also put to tender its 50,000 CBM trucking, which resulted in savings of up to EUR 1 million, and an improved quality of service with some better long term partners.

SCMO advises RIO TINTO

SCMO was requested to help RIO TINTO for the tender management process of delivery transports, from the various sites in Europe.

With 36,000 people, RIO TINTO is the world leader in the mining industry, specialized in metals & minerals. Its activities span the world but are strongly represented in Australia and North America. There are also significant businesses in South America, Asia, Europe and southern Africa.

It was the time when newly bought companies were included in the tender process. Beyond the technical issue, it was necessary to keep and respect every company’s specificities (3 companies and 12 industrial sites in 6 countries in Europe). Business volumes are 662,000 tons, 33,450 shipments and EUR 29 million expenses per year.

The tender resulted in reduction of suppliers (176 to 70), and 6% reduction on costs. That is a saving of EUR 1.7 million. The tender simulations were processed through SCMO tender management software solution.

SCMO advises LEXMARK

SCMO was selected for a benchmark & cost optimization for LEXMARK sea freight supply volumes of 11.000 TEUs representing a cost of EUR 13 million per year.

With a turnover of USD 4 billion, LEXMARK manufactures, designs, and sells printing solutions and products in 150 countries. LEXMARK monitors’ supply originates in the Far East and the USA. Goods are forwarded by sea freight to Antwerp (Belgium) and Rotterdam (Holland) for deliveries to DC (Distribution Centers) in Belgium and Netherlands.

SCMO intervention generated EUR 1.2 million Euros savings versus current costs to LEXMARK's utmost satisfaction.