DSi’s Assessment Process
DSi’s proprietary assessment process consists of six structured steps as follows:
1. Data Selection
A sample of historical freight invoices are selected for analysis. Those invoices should be representative of the most current activity. All invoices for a selected time period such as thirty to sixty days would be used so that annual projections for freight costs and annual savings can be developed. Annual projections of freight costs should be validated against P&L line item expense for freight costs to insure accurate projections and data sample.
2. Data Validation and Entry:
Key statistical data is entered from these invoices into our Assessment database which verifies the data and insures consistent capture of charges across carriers. Incorrect or inconsistent information is identified for clarification and correction.
3. Data Analysis
The resulting data is analyzed and summarized along a series of dimensions (such as carrier type, geographical mode, and service) to provide insight into current freight costs and service requirements. This data is compared for similar patterns of commodities shipped, average weights, geographical areas of service and other pertinent characteristics of your overall distribution patterns.
4. Benchmarking
The results are compared to a DSi proprietary historical database of information from hundreds of similarly profiled Request for Proposal programs( RFP’s) conducted by DSi for existing and prospective DSi clients. The results achieved from participating carriers in these RFP’s, represent DSi good faith estimate of attainable pricing through a DSi conducted RFP.
5. Findings
The findings are presented. Historical benchmark costs are shown from the assessment data, an evaluation of where your company is relative to these benchmarks and quantifiable savings opportunities are identified and discussed.
6. Ongoing Measurement
These benchmarks are then incorporated into our standard reporting process to show the achievement of reoccurring savings month after month.
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“DSi’s services delivered significant measurable savings in direct freight cost reduction… improved our visibility and control over inbound materials…also successfully leveraged the cost synergies of spot-market buy opportunities.”
Mr. Wade Martin
V.P. Sales–Shawmut Corporation
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