CASE STUDY

Amway finds a better way to procure freight and manage bids

About the customer

Amway is an $8.8 billion direct selling business based in Ada, Michigan. Top-selling brands for Amway are Nutrilite™ vitamin, mineral and dietary supplements, and Artistry™ skincare and color cosmetics – all sold exclusively by Amway Business Owners.

Global sales in 2016, which includes revenue from direct selling operations and other business holdings, made Amway the No. 1 direct selling business in the world.

Present in more than 100 markets and territories, Amway manages a sprawling supply chain with manufacturing sites in the U.S., China, India and Vietnam, utilizing a network of hundreds of distribution centers around the world.

Our previous sourcing tool did not offer the flexibility to create sourcing events tailored to our unique business requirements. On top of that, we now have access to powerful tools to analyze a huge amount of data in a relatively short period of time.

Brandon Clark,

Manager - ​​​​​Global Transportation,
Amway

The challenge

Time-consuming processes were a roadblock to progress

Amway was using a generic e-procurement tool, but found it didn’t focus enough on the specialized needs of transportation sourcing. Time-consuming manual processes were getting in the way of bringing on new carriers, creating huge delays in their assignment process, and represented an inefficient use of resources.

 

Solutions + benefits

Amway chose Transporeon Freight Procurement for its transportation-specific features, and opened the door to a vast, collaborative environment of enthusiastic suppliers.

With dedicated expert support, Amway simplified rate structures and now saves more than 200 labor hours during bid collection and analysis.

 

The results

Optimization of logistics processes using a digital, transport-specific solution led to significant savings, greater carrier satisfaction and happier colleagues.

Freight Procurement empowered Amway to go to bid more frequently and compare complex award options with minimal effort. Thanks to implementing a more professional approach to bid administration, Amway was able to reduce costs by more than 25% in some lanes, and 8% overall.

 

Facts and figures

  • Present in 100+ markets and territories

  • $8.8 billion direct selling business 

  • 8% reduction overall achieved on transportation costs

  • More than 200 hours saved

 

PRODUCTS

Explore our digital freight solutions

Together our products work in harmony to increase transport efficiency along the full lifecycle of freight activities.

Freight Sourcing Hub

Freight Procurement

Freight Procurement
  • Smart purchasing strategy.
  • Achieve optimum freight rates.
  • Reduce administrative effort and costs.
  • Find suitable partners worldwide.
  • Audit-proof the tendering process.

Freight Sourcing Hub

Autonomous Procurement

Autonomous Procurement
  • Automates procurement using data and behavioural science.
  • Analyses how carriers make pricing decisions.
  • Achieves requested capacity at lower freight rates for road transports.
  • Fully automated process of predicting, framing offers, and concluding assignments.
  • Entirely carrier specific and automated process.

Freight Sourcing Hub

Procurement Advisory

Procurement Advisory
  • Save up to 19% on freight costs.
  • Save 30% on administrative effort with e-sourcing.
  • Use only quality-approved data for tender processes and RFQ events.
  • Ensure 100% compliance with tendering processes.

Insights Hub

Market Insights

Market Insights
  • Monitor the contractually agreed rates between shippers, logistic service providers, and the spot market.
  • Use important "indirect" indicators to illustrate the capacity situation on any given lane or market.
  • Define the lanes and metrics that you want to monitor.
  • Get a clear overview of the biggest market changes and top movers.