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Linens ‘n Things cuts logistics sourcing through web-based system
To get carriers for a new West Coast distribution center, housewares retailer Linens ‘n Things Inc. turned to an Internet-based sourcing system and cut in half the time it would have spent lining up contracts under its old non-web-based system.
To get regional and national transportation carriers for a new West Coast distribution center, housewares retailer Linens ‘n Things Inc. turned to an Internet-based sourcing system from CombineNet Inc., and cut in half the time it would have spent lining up contracts under its prior, non-web system, said executive director of transportation Bob Endemann.
"CombineNet has already delivered unprecedented results in one sourcing event alone," he said. "We cut our time in half by quickly zeroing in on the best possible solution. This was definitely a `click-and-play` scenario and we look forward to applying the technology to future transportation events."
Linens ‘n Things is using Decision-Guidance Systems, an e-procurement application hosted on a web server by CombineNet. The application gives the retailer browser access from any web-based computer terminal to view pricing and other criteria submitted by carriers bidding for its business. For its West Coast distribution center, it structured the bidding process in three rounds to accommodate price and non-price criteria, including shipping rates, routes, delivery volumes and schedules.
"Prior to CombineNet, we used manual methods to conduct our bidding, which required three to six weeks of work per event, not including the data preparation," Endemann said.