Electrolux shapes living for the better by reinventing taste, care and well-being experiences, making life more enjoyable and sustainable for millions of people. A leading global appliance company, Electrolux sells more than 60 million household and professional products in more than 150 markets every year.
For years, global appliance firm Electrolux struggled with finding a way to properly benchmark their container freight rates, not just as a snapshot in time but dynamically. The firm moves more than 185,000 TEUs per year on approx. 2,300 trade lanes, and this massive scale demands more than just an occasional view of shipping costs relative to the market; too often by the time information was compiled, it was often already out of date. Electrolux needed something more powerful in order to compete globally.
Part of the challenge was that the containerized shipping industry has been slow to digitize, making it difficult to obtain a clear view of the marketplace. They knew they were paying a premium to manage their supply chain, and found that 30 percent of their container requirements came from a 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.
To improve operations and manage costs, Electrolux needed on-demand real-time data that would empower it to improve negotiation power with suppliers and make smarter decisions that would ultimately benefit the bottom line.
Electrolux found that previous benchmarking services they had used were too static to provide the type of data and insights they needed. After conducting a thorough search, Electrolux selected Xeneta to help it gain the insights its business demanded. Xeneta provides Electrolux’s managers with real-time market data, enabling them to make the best decision at any given moment. That includes immediate access to global corridor performance data presented in a user-friendly way to understand top global market trends.
Electrolux can use both historical and current trends presented in an intuitive graph to understand macro market conditions and their performance relative to it. Logistics managers can use Xeneta’s user-friendly interface to drill down to individual lanes and view their rates on relevant trade corridors, as well as find projected savings if their rates match market rates.
Moreover, Electrolux can now create more accurate models to project future savings, making buying freight more of a science than an art. Best of all, they can benchmark incremental changes as they happen, allowing them to react in real-time to shifting market conditions.
By using Xeneta, Electrolux’s global logistics operations have become more efficient, more effective, and less expensive. By having better information that enables them to compare costs relative to what competitors are paying, the firm has limited container costs to only 10 percent of its overall logistics costs. And that’s something to delight any global logistics professional.