Sunday 23rd Oct 2016 - Logistics Manager

Reduced freight costs lead to tender

Affimet, part of the Transformation division of Pechiney Group and specialist in aluminium recycling, has completed its first tender with procurement service provider Freight Traders. The aluminium ingots produced by Affimet are principally used in car manufacturing, and the tender shows how the metal and automotive industries are benefiting from Freight Trader’s processes.

The tender took place over a two-week period and 4,000 offers were received from 100 carriers. Freight Traders’ bespoke analysis tools enabled Affimet to identify the most appropriate carriers just days after the tender ended.

Consistent with all European manufacturers, Affimet was facing increased competition from countries with access to cheaper workforces. As part of its strategic objectives for 2004, Affimet identified the need to reduce freight costs and increase its ability to deliver customer orders as quickly as possible.

Despite the specific challenges of the tender (for example, the geographical remoteness of certain markets, fluctuation in customer demands and the low cost per tonne of the products) Affimet exceeded its objectives in terms of transport cost reduction while ensuring a high level of quality was maintained.

The company is now looking to use the same approach for future tenders, including sea freight.