New report sponsored by BravoSolution

American Shipper Logistics Survey: Procurement Technology Investments Lag Behind Increased

Transportation Spending

Transportation spend ‘keeps on trucking.’

• The study points out a major imbalance in the scope of spending vs. the technology needed to properly manage and optimize logistics networks.

• Here are the other top findings from the study of 200 transportation buyers.

Even as the economic recovery lags, 75% of buyers reported an increase in transportation spend – according to the 2012 American

Shipper Transportation Procurement Benchmarking Study.

Spreadsheets mask inefficiency.• Spreadsheets remain king – hiding sourcing inefficiencies and opportunities

for volume-based purchasing and transportation optimization.• Only 25% of buyers are using a completely systems-based approach for

procurement. • More than 40% still rely on spreadsheets only.

• The Fix – Invest in spend analysis. • The first step – Clean and import all spend data, supplementing it with critical

supplier and market data. • Spend analysis can then uncover opportunities for supplier consolidation, volume-

based pricing, contract negotiation and long-hidden savings.

Long-term profits miss the mark.• If technology continues to fall to the bottom of procurement’s priority

list, missed savings are multiplied, and company profitability suffers.• Nearly two-thirds of respondents have no plans to automate

transportation procurement.• Only 12% indicate that automation is in their company’s five-year plan.

• The Fix – Understand that ROI far outweighs the initial invest.• Of course, procurement will benefit from an initial wave of savings, but

advanced sourcing tools add value beyond procurement.• Benefits include: Improved decision making, better procurement

execution, and the ability to quantify progress at every stage in the procurement life cycle.

Complacency halts resource optimization.• Easy improvements can lead to more costly and time-consuming process

overhauls – when ignored over time. • Ignorance is bliss – More than half of 3PLs are satisfied with their current

procurement process.• More than 80% of large shippers believe that procurement technology streamlines

data management and improves the efficiency of complex sourcing.

• The Fix – Have a plan to overcome user-adoption issues. • It takes more than technology to change the culture of procurement that’s

maintained the status quo for more than a decade.• Create a training and skills assessment plan to ensure that users understand any

new tools and processes.

Do you still depend on spreadsheets?Have you made the investment in procurement technology?Download the full report, free of charge, at BravoSolution.com.

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For more information on BravoSolution,the spend analysis, contract management and strategic

sourcing company,visit www.bravosolution.com