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SSAB Case Study

SSAB, a steel company, coordinated a large freight procurement project with a newly acquired company to reduce costs. They used the TenderEasy and Primelog systems to automate the procurement process. Over 100 suppliers submitted 135,000 tenders through the user-friendly TenderEasy system. The resulting contracts ensured reduced freight costs and were imported into Primelog, which automatically checks invoices against agreements. This comprehensive process eliminated manual work and ensured quality suppliers while realizing cost savings through efficient procurement and invoice auditing.

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Irene
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203 views

SSAB Case Study

SSAB, a steel company, coordinated a large freight procurement project with a newly acquired company to reduce costs. They used the TenderEasy and Primelog systems to automate the procurement process. Over 100 suppliers submitted 135,000 tenders through the user-friendly TenderEasy system. The resulting contracts ensured reduced freight costs and were imported into Primelog, which automatically checks invoices against agreements. This comprehensive process eliminated manual work and ensured quality suppliers while realizing cost savings through efficient procurement and invoice auditing.

Uploaded by

Irene
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Reduced freight costs guaranteed

SSAB AIMS TO AUTOMATE AND OPTIMIZE


FROM PURCHASING TO PAYMENT
SSAB Nordics took a comprehensive view when it
decided to coordinate its road transport procurement
with Ruukki, a newly acquired Finnish company. The
joint solution from TenderEasy and Primelog enabled
an extensive procurement process in a very short time
and also ensured that the result reduced freight
costs would carry on during the term of contract.
The solution was used for the first time to take control
of the freight sourcing and contracts used for the
companies truck-based export flows. The project
team was staffed by employees from both Sweden and
Finland who worked together to define the requirements on their future suppliers. With local knowledge
of each units requirements on its freight solution,
quality was assured in the choice of suppliers, while
using a shared procurement process and approach.

Less manual work with a user-friendly


procurement system
For SSAB, this was a substantial and comprehensive
procurement, and the company was looking for a
system that would eliminate manual, highly timeconsuming work. TenderEasy was chosen for its user
friendliness, both with regard to SSAB and the transport
companies, and the project team only needed a short
training session to use the system. The tender templates
were prepared in TenderEasy, together with all important
information that the transport companies needed.

A web-based startup meeting was held with all


participating transport companies. At the meeting,
they were introduced to the procurement and SSABs
requirements, and they were instructed in how the
tender templates should be completed. The transport companies then submitted their tenders through
the system, allowing SSAB to review, compare and
analyze tenders from many different suppliers in a
simple and repeatable manner.

108

SUPPLIERS

135 000
TENDERS

40

SUPPLIER MEETINGS

The procurement was carried out with several tendering


rounds, meetings with suppliers and final negotiations.
Approximately 40 supplier meetings were held in 30 days.
As a procurement system, TenderEasy worked very well for
us, says Roger Lindgren, Transport Sourcing, SSAB. We
wouldnt have been able to carry out such an extensive
procurement with such a large number of suppliers without
support from the system. Naturally, the fact that TenderEasy
can make comparisons quickly and smoothly made things
a lot easier for us. It was easy to give the suppliers feedback
on their results between tendering rounds. The ability to do
so for all flows and tariffs was incredibly valuable.

Advanced invoice control ensures that


agreements are followed
When the procurement was concluded, it was easy to
import the new transport agreements into Primelog
TMS, as the tender templates used in the procurement
were compatible with Primelog TMS right from the start.
All freight invoices are checked continuously and automatically in Primelog, against both shipment information and price agreements. SSAB just needs to review
and take action in case of deviations. Combined with
Primelog, the new contracts have made it possible to
ensure that the right price is paid for freight transports.
All deviations surface automatically, with minimal input
from staff.
With the help of Primelog TMS, our aim is to ensure
that the agreements we have negotiated are followed, says
Maria Weibull, Unit Manager Logistics, SSAB Special Steel.
Also, Primelog gives us the support we need to analyze
our freight costs historically. The system allows us to break
down costs so that we can identify any additional potential
for improvement before the next procurement.

Reduced costs x 2
By using Primelog for invoice control and TenderEasy
for procurement, SSAB aims to automate and optimize
its freight service process, from purchasing to payment.
That means getting better control of how costs arise
and how they are distributed internally. Costs savings
have also been achieved through both efficient procurement and automatic invoice audit.

Cost Control
Freight sourcing
1. Freight tender is set up in TenderEasy
2. Carriers respond to tender
3. When carriers are nominated the
tariffs are transferred to Primelog
4. Primelog pre-calculate the cost
for the shipments
5. Invoice audit is done automatically
at the arrival of the invoice
6. Analyze deviations and perform
corrections
A solution for transport procurement and invoice auditing

About SSAB
SSAB is a highly specialized, global steel company. The company is
a leading producer on the global market for Advanced High Strength
Steels (AHSS) and Quenched & Tempered Steels (Q&T), strip, plate
and tubular products, as well as construction solutions. SSABs
production plants in Sweden, Finland and the US have an annual
steel production capacity of 8.8 million metric tons.

About TenderEasy
TenderEasy is a provider of market leading technology for transport
sourcing. Being recognized as the easiest-to-use solution in the market,
we are now rapidly expanding both the platform and our team in order
to meet future requirements from shippers around the world. Our
vision is to help our customers manage and take advantage of the
opportunities made possible by digital transformation of logistics, and
to make one of the world largest industries more efficient and environmentally sustainable.

About Primelog
Primelog helps customers with global supply chains increase performance
through better control, lower cost and higher service levels, and is a
leading SaaS (Software as a Service) provider in Northern Europe. Our
competence in logistics, together with our software Primelog TMS,
attracts our global clients, the largest and most prominent companies
in their respective industries. Primelog is active through its own offices
and partner networks in Europe and North America.
For more information, please visit www.primelog.com

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