Due to their complex shipping needs, Continental knew that full market visibility was a must-have going into tenders. Their year-round schedule meant regular RFQs and negotiations — and without a clear view of market movements, they had no basis for what a fair rate was.
While overall market visibility was their high-level goal, Continental's immediate priority was to be able to validate that their tender bids, provided only by selected suppliers, were comparable to and in line with fair market prices.
Without the ability to verify their rates, no matter how much this Shipper trusted their suppliers, it was clear their bottom line was being built on opinion. This was always at the back of their mind, but got amplified during tender season.
In the past, Continental had used simple tools to arrive at target rates in the tendering process, but results left space for further improvement. They were not truly armed with the accurate information they needed to succeed.
Something had to change.
The Right Data: Xeneta Analytics
When the Freight Purchasing team first looked into Xeneta, they wanted to make sure there was sufficient data (e.g. container volume, prices) in the platform.
What did they find? 400m+ rates, representing $60bn+ in freight spend.
This depth and breadth of data was more than enough to allow them to strategically execute and analyze their tenders. And because Xeneta adds over 10M rates a month from shippers and freight forwarders all around the world, it was clear their market understanding would just keep growing.
Now, thanks to these millions of data points, Continental’s Freight Purchasing team can strategically monitor volatility on different corridors, contract lengths and benchmarks prior to their tenders.
“We use Xeneta average and low rates as the benchmark to offered rates in our tender,” explains
The market intelligence Xeneta provides gives Continental a critical business advantage.
In addition to Xeneta Analytics, Continental relies upon some of Xeneta’s other services, such as custom reports and
Improving Internal Processes
Röttger also notes the importance of sharing Xeneta market intelligence within the organization. The rate data is used as an evaluation tool when Continental analyzes its supply chain performance on a monthly basis.
The Right Tool: Usability and Graphics
When evaluating solutions, short ramp-up time and an intuitive interface were key for Continental, who wanted the team to be able to get the most value out of the solution quickly.
With a tailored onboarding process and close guidance by their Customer Success Manager, Continental was able to get up and running very soon after partnering with Xeneta. “We are able to monitor our rates permanently and have a full overview of these rates on the dashboard,” states Röttger. “The platform gives us an instant view on whether the market is moving in one direction or the other.”
Continental AG develops innovative technologies and services for the sustainable and connected mobility of people and their goods. Continental AG products and services, such as all-electric drive systems, sensors, and tires, are found in three out of four vehicles worldwide (Annual Report, 2016).
Cutting-edge technologies in assisted and automated driving, connectivity and electrification are spurring unprecedented growth for the company (Sales in 2021 EUR 34 billion, growth of 6% compared to 2020). Founded in 1871, the technology company ships 100.000 TEU annually. Continental’s most important trade routes are EU-US and Asia-EU.
Continental presently employs more than 191,000 employees across 58 countries.
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