Schneider Logistics Inc., an international lead logistics provider, said Wednesday that its collaborative transportation procurement product -- SUMIT CVA -- has delivered $31 million in savings
to shippers since its introduction a year ago.
To date, Schneider Logistics: purchasing professionals have used SUMIT CVA to process more than 25 bids for transportation and have awarded carriers across all modes $400 million in long-term freight contracts with an implementation rate of over 90%.
Schneider Logistics credits the success of SUMIT CVA to its ability to balance the needs of the shipper with bundled, multi-round, conditional bidding that optimizes the carrier’s network. This balance is powered by industry leading algorithms developed in concert with the nation’s leading academics. Shippers that have used the SUMIT CVA include Caterpillar, CNH Corp., Ford Customer Service Division, General Motors, Ocean Spray Cranberries, Pasadena Paper, SCA Tissue and World Kitchen, among others.
"SUMIT CVA replaces a manual, painstaking process with an efficient and collaborative approach to procuring freight based on leveraging shipper and carrier networks," said Steve Erb, senior director of logistics, CNH Corp., a leading manufacturer of agricultural and construction equipment. "By helping our transportation providers align their capacity with our needs, Schneider Logistics enabled them to save money and pass these savings directly on to us in the form of lower shipping costs."
SUMIT CVA is based on Combined Value Auction (CVA) principles offered on a commercial basis. SUMIT CVA involves a consultative bid process with Schneider Logistics professionals that combine freight procurement expertise and a robust network to give shippers the ability to customize their freight requests and take advantage of combined value bids.
A multi-round auction enables pre-qualified carriers to view a shipper’s transportation requirements in order to identify and bid on packages of lanes that best utilize their assets.
For more information about SUMIT CVA, visit the Schneider Logistics web site at www.schneiderlogistics.com, or call (800) 525-9358.
Schneider Logistics is a wholly owned subsidiary of Schneider National Inc., a leading provider of premium transportation services.