Success Stories: Innovative Technology Sets a New Standard for Global Household Goods Pricing
An increasing expansion of locations and move types is impacting an already complex global household goods transportation environment. Mobility managers, who are balancing expectations for cost transparency and optimal employee experience, are looking for assurance that they are making the right choices for their companies and their mobile employees.
Program Size:2,300 mobile employees
- Talent Mobility Program Administration
- Financial Services
- Cost Estimates
- Expense Management
- Cost Collection
Assessing and streamlining the performance of the household goods transportation services under their mobility program was one of the strategic program objectives for this global financial services organization, when looking for a new mobility services provider.
With a complex global mobile employee population requiring household goods transportation annually into and out of 58 countries, determining the approach that would deliver excellent customer experience, competitive costs, and reduced transit times was critical. The client had experienced increasing and unpredictable prices, and an extremely labor intensive and time-consuming process. They wanted a better solution and partnered with BGRS to:
- Provide an independent, vetted, and managed household goods supplier network to drive greater transparency and flexibility in areas such as supplier selection, evaluation, service level and performance management, and cost.
- Deliver a dependable digitized method for contract awards aligned to the best service partner, at the optimal price, with adequate resources and capabilities in key client locations.
The BGRS solution was developed to provide clients with full cost control, transparency, and assurance that they are getting the best price for their shipments.
BGRS’s Rate Engine provides an integrated global model for household goods pricing and management.
- In contrast to approaches that utilize manually administered models with static pricing, the BGRS model provides real-time competitive pricing on every move, from an independent global network of rigorously selected and managed service partners.
- Initial pricing is based on negotiated and contracted market rates, and suppliers cannot exceed them in the bidding process. This ensures that the clients can accurately budget and forecast.
- New move initiations are automatically provided to suppliers on our platform, enabling real-time bidding. Suppliers have full visibility into the detail of potential and upcoming moves, including client-specific requests, and an opportunity to submit an updated bid below their initial pricing.
- BGRS’s Rate Engine is integrated with our supplier performance management platform to measure service quality, one of the key criteria for the service partner’s inclusion in the program.
- Rates are captured uniformly within the system, including multiple shipment sizes, ensuring transparent comparison and guaranteed through BGRS’s audit service. This component is offered to all clients as part of the service.
RESULTS AND OUTCOMES
BGRS’s household goods team analyzed the quotes, comparing volumes and special requests as well as ensuring that quotes were in line with the client’s policy. The team then aligned the preferred household goods service provider network and audit service to the client’s needs. This model immediately demonstrated how the new digitized rate engine could streamline, simplify, and optimize the household goods process.
Using BGRS’s innovative Rate Engine and service model, the client experienced benefits across all aspects of their household goods transportation program, including:
- The controlled service model process, with full transparency into the suppliers’ performance rating for the given transportation lane, ensured the best value for each specific move.
- By utilizing the BGRS model the client is saving 23% on the cost of shipments in comparison to their previous approach.
- The analytics that are available with the BGRS platform allow the client full transparency into the service utilization, transportation times, cost, and employee satisfaction.
- The rigorous audit protocol, generated client confidence in both price accuracy and compliance.
"Ultimately, it’s about getting the right supplier at the right price to service the client’s move."
Vice President, Household Goods Shipments, BGRS