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Electrolux is a $19-$20 Billion company that manufactures and supplies home appliances to major retailers worldwide. Their flow of products come from low cost countries, to their factories for manufacturing, and then to the major retailers worldwide. Although their top line has been relatively unchanged for the last 10 years, their global shipping containers have increased over twenty fold from approximately 8,000+ containers per year to close to 180,000. Their supply base for components and raw materials have shifted to countries with lower costs, and their major customers have expanded into new markets, further increasing their international shipping volume.

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The Challenge  

  • Gaining the visibility to understand how their quotes compare to rates received by other companies
  • Inability to obtain on-demand and updated data needed to increase negotiation power with suppliers 
  • 30% of their container requirements come from demand that is incremental to their annual contracts as a result of new products, supplier changes, new customers, and other circumstances that might drive changes in their container demand

 Solution | Outcome

  • The posibility to model on a “what if” basis to understand their potential savings from leveraging pricing opportunities
  • The ability to benchmark the incremental changes as they occur which enabled a strong competitive pricing profile
  • Due to constant vigilance and benchmarking efforts, the container costs alone went down to 10% of their total Electrolux logistics costs

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"Xeneta is far superior to anything I have ever seen in this market. We know where we stand in the market,
but what we needed was dynamic information to always keep us informed.
The drill-down capabilities present exactly what you want to see.
This is unique and powerful."

Bjorn Vang Jensen | VP Global Supply Chain & Logistics, Electrolux