Infographic analysis: The impact of optimizing your vendors
By Kelvin Donald
Aug 13, 2015
Moving an employee from one continent to another, or even one state to another requires the coordinated effort of many vendors. And just like any other company, the vendors that provide the services to relocate employees also have their strengths and weaknesses.
Because MOVE Guides works with a large pool of vendors – over 1,000 - we are able to analyze the service levels and rates across multiple vendors and turn that into tangible benefits for our customers. The accurate, timely, and actionable data we have access to in the Talent Mobility Cloud enables us to identify the best vendors for a given relocation in terms of service, quality, and rate for that specific destination.
In our latest infographic we take a look at how even optimizing a single type of vendor, in this case shipping, can have a profound impact on cost and service.
Looking at data from over 12,000 rate quotes for over 2,000 shipping lanes we have identified that the standard deviation for shipping rates is about 22%. In simpler terms, this means that the most competitive shipping vendors are 30% cheaper than the average rate for a given shipping lane (i.e. New York to London). When the average cost of a 20’ shipping container is $10,000 this equates to a potential saving of $3,000 per move, or approximately $1M over 300 moves in shipping costs alone. That’s quite significant, you will agree.
Let me share a brief example to better demonstrate where such variation in cost comes from. To do so, I am using a fictitious shipping company called“Shipper A”.
Shipper A offers shipping services throughout North America and Asia. Shipper A offers household goods shipping from San Francisco to New York that scores high in service and quality with a very competitive rate. A great choice for your shipping needs. Shipper A also offers household goods shipping from San Francisco to Hong Kong, however for this particular lane it scores low in service and quality while its rate is quite high compared to its competitors. For the lane of San Francisco to Hong Kong, you’re better off using a different shipping provider.
Without the means to analyze a large pool of vendors, this sort of insight may not be available to those responsible for moving employees around the world.
MOVE Guides is the talent mobility partner to fully manage all types of mobility programs, and we are already helping 21st century organizations like Societe Generale, SurveMonkey and Adobe to successfully deploy talent where they need it most.
With our unique data-based approach we leverage a large pool of vendors to ensure that you’re getting the best rate and service available at all times. This is made possible by our mobility platform, the Talent Mobility Cloud, as well as our dedicated vendor management team.