DSi’s Freight Cost Assessment Process - Competitive Audit


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 shipping costs and annual freight shipping costs savings can be developed. Annual projections of freight shipping costs should be validated against P&L line item expense for freight shipping 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 freight shipping 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 shipping costs and service requirements. This data is compared to historical shipment data for current and prospective DSi clients for similar patterns of commodities shipped, average weights, geographical areas of service and other pertinent characteristics of your overall distribution and logistics services patterns and requirements.

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 freight shipping costs through a DSi conducted RFP.

5. Findings
The findings are presented. Historical benchmark freight shipping costs are shown from the assessment data, an evaluation of where your company is relative to these benchmarks and quantifiable freight shipping cost reduction opportunities are identified and discussed.

6. Ongoing Measurement
These benchmarks are then incorporated into our standard reporting process to show the achievement of reoccurring freight shipping savings month after month.