Case Study | Strategic Freight Cost Optimisation
Modul8 partnered with a global building products manufacturer undertaking a major supply chain transformation program. A central focus was the optimisation of group freight procurement, a $38 million annual spend spread across multiple logistics providers. Modul8 led the end-to-end freight RFP process, consolidating spend, improving supplier performance, and strengthening commercial outcomes. The project delivered $4.4 million in annualised savings and established a streamlined, scalable logistics network aligned to the organisation’s long-term strategy.
1. Challenge
- Fragmented freight spend of $38 million across multiple logistics providers and states
- Inconsistent supplier capability, performance, and service alignment
- Limited visibility of total cost and efficiency across the network
- Reduced ability to leverage scale and negotiate optimal commercial terms
- Lack of strategic partnerships to drive innovation and continuous improvement
- Constrained potential to realise the full value of the group’s supply chain transformation
2. Solution
Modul8 was engaged to lead the end-to-end freight procurement RFP process, including:
- Development of the complete RFP documentation and evaluation framework
- Establishment of a verified baseline spend and freight cost model
- Design of an agile, scenario-based evaluation model for multi-party bids
- Management of supplier engagement, responses, and presentation process
- Facilitation of commercial deep dives and contract negotiations
- Preparation of shortlist recommendations and board approval packs
- Transparent, collaborative engagement embedded within the client’s team
3. Outcome
Financial
- $4.4 million in annualised savings (11.6 % reduction vs baseline spend)
Strategic & Operational
- Supplier base rationalised from 30 to 7 (76 % reduction)
- Strengthened alignment with scalable, high-performing logistics partners
- Enhanced commercial leverage and governance framework
- Established platform for ongoing optimisation and continuous improvement