Think big - volume creates better conditions

The difference between achieving a result and a really good result with transport optimisation lies in three things: The courage to think big. The willingness to call on specialists. And exploiting the benefits of owning the freight contracts themselves. Elis Denmark has experienced this in cooperation with TransportRådgiverne, which has so far worked with several of Elis' branches in the Nordic region.

Elis A/S is a French-owned global company with branches in 28 countries. From this perspective, Elis Danmark A/S, formerly Berendsen Textil Service A/S, is part of a large global organisation, where Morten Nordskov, Head of procurement, succeeds in creating tangible results with the potential to scale. This is despite the fact that the beginning was slightly chaotic.

Around 100 agreements with different carriers. Alone in the area of pallets and packages in and out of Denmark. This was the reality for Elis Danmark A/S in 2018, when Morten Nordskov was hired to build a central operational procurement unit. The expectation was for a reduced number of suppliers, lower costs, optimisation and consolidation. That's why he chose to work with TransportRådgiverne:

Unlike us, TransportRådgiverne are specialists in transport, so I wouldn't be able to do the job equally well myself. Their knowledge of data analysis, suppliers and markets is what makes the difference between achieving a result and a really good result.

From 100 to 5 agreements
With a focus on clarity and structure, the number of transport agreements was cut to five. Instead of mild chaos, Elis Danmark A/S gained control of the freight areas where they have the highest volume of turnover in and out of Denmark. Financially, the results were palpable, and cooperation has since expanded to other countries.

Transport agreements in Norway have been sorted out. An external warehouse operation has been successfully moved from Sweden to Poland. And right now, TransportRådgiverne are in the process of further consolidating the transport agreements from 2018.

Morten Nordskov is also happy to be able to call on the specialists at TransportRådgiverne if issues arise on a day-to-day basis. During the Covid-19 pandemic, for example, Elis Danmark A/S avoided paying an unjustified winter surcharge for freight via a ferry route they did not use at all. In general, collaboration provides an opportunity to learn from processes and an enthusiasm for more knowledge and full implementation.

What is the best way to create value?

For Morten Nordskov, it is clear that there are savings to be made when you own the transport agreements yourself. But then you also own the problems yourself and you must be ready to make demands and ask critical questions. However, he stresses that it is worth all the effort in terms of transparent transport agreements, higher volumes and increased assertiveness.

Morten Nordskov's advice is to think big, and he sees enormous potential in pooling Elis’s procurement power Europe-wide and globally, with the help of Transportrådgiverne. Because naturally Elis could have conducted a European tender itself, but as he honestly says: The company would take a long time to enter into agreements, would be moving into uncharted territory and would end up in pitfalls that Transportrådgiverne are able to navigate around. This is simply because they know the transport business and are used to working internationally.

It felt safe to have him there, and after the meetings he was a very good support when I needed to call and return on certain issues.

In the end, the procurement resulted in Ewalco's transport being included in a Frame Agreement that Humble Group signed for all its companies, which was a big saving for the group.

Elis Danmark A/S is not a transport company. We are specialists in renting out and washing textiles. So bring the right set of skills to the table during the process - that's how you create the most value.