Sharp tender turned volume into value

After a few turbulent years in the wake of the COVID-19 pandemic, Change of Scandinavia decided in 2023 that the timing was right: A complete tender of all transport services would reap the potential of the market in the form of better transport agreements. Subsequently, COO Niels Krogh concludes that TransportRådgiverne's competences brought the project to the finish line - on the good side of expectations.

Good timing for tender
Efficient transport is key to the business of the Danish lingerie brand Change of Scandinavia: the company handles the entire value chain from production to delivery and customer handling itself. And it is transport that connects the chain from the East to Europe and Canada.

Transport from the Far East has long been challenged in terms of both price and stability. But in 2023, both Change of Scandinavia and TransportRådgiverne recognised that the timing was right.

- In general, prices had decreased. At the same time, new logistics companies had entered the market - and we were particularly interested in Poland, where our European warehouse is located. Finally, our logistics director in Poland had gained experience that could benefit the tender," explains Niels Krogh.

The aim was to get the savings that the company's volume warranted.

Best practice and strong team
Change of Scandinavia has previously carried out tenders in the transport sector themselves. But this time they chose to put TransportRådgiverne on the job.

Niels Krogh says:

TransportRådgiverne presented a very convincing procedure for the project. Together with a specialised team, it gave us the certainty that they could handle the task in a way we didn't have the resources to do ourselves. And it turned out to be true.

Among other things, he points to the weight that TransportRådgiverne brings to the table:

They are updated on both the market and the individual providers. Therefore, they are able to create strong competition among the right providers in our favour. And they can apply extra pressure in negotiations when needed.

The right setup - and the right gut feeling
Price is important, but for a fashion company like Change of Scandinavia, delivery reliability and traceability are also important. So these were some of the parameters that were included in the quality assurance TransportRådgiverne carried out prior to the final negotiations with the suppliers. Niels Krogh also emphasises the importance of well-established processes and systems.

- However, not everything can be researched. So your gut feeling is important when you meet the providers. Are they professional and dedicated? Do they understand the business? This is crucial in the end.

Full transparency is a prerequisite
The first step was to create accurate and complete documentation for the task the suppliers had to fulfil. Here, Change of Scandinavia had a strong data base that stretched back years.

The task for TransportRådgiverne was to ensure full transparency in the data basis. While inbound transport from the East is relatively simple, outbound is more complex. Change of Scandinavia supplies its 350 stores in 9 countries and also delivers directly to thousands of customers and parcel shops in Europe and Canada. But where exactly was the parcel delivered? Was it to the store, parcel shop or doorstep? - And so on. This insight was created by combining with data from the carriers.

- The details required countless hours. In return, we got a sharp approach to the tender based on the right parameters," Niels Krogh notes.

Challenges were solved
The new setup went live just before two of the biggest seasons of the year: Black Friday and Christmas. So it was quickly pressure-tested and the challenges were addressed.

- Among other things, we struggled with returns, which are an important part of the interaction with customers. And we needed an express setup for sea freight so we could route important shipments directly to Poland," says Niels Krogh. Both were solved in close collaboration with TransportRådgiverne.

Every penny counts
For a lingerie brand, the primary value - and the primary cost - will always lie in the product itself. But that doesn't make the cost of transport any less important:

- It's about finding the sweet spot where the price/quality ratio is right. Our intention was to maintain the quality of the deliveries while receiving significant savings. And we've achieved that," concludes Niels Krogh.

But what has it taken for Change of Scandinavia to get there? The company's COO is also quite clear about this:

TransportRådgiverne know how to get the job done, and they ensure a sharp approach to the tender. But that doesn't exempt us from doing our part of the job. Or to put it another way: There is always a lot of work involved in making money. Even with skilled consultants on hand.

Change of Scandinavia achieved among other things:

• A significant saving on overall transport costs.
  
  
• Index-linked ocean freight price with fixed handling charges and fees.

• Daily delivery of returns to the warehouse compared to 2-3 times a week previously.
  
  
• 2-year service agreement with invoice verification and access to TransportRådgiverne’s expertise.