Solution Sheet – Subcontractor & Yield Optimization
Subcontractor & Yield Optimization
Railway undertakings rely on partners and subcontractors to run their daily operations. Managing those subcontractors in an efficient manner is a constant challenge. There is a great deal of complexity connecting customer orders to the purchase contracts to execute those orders, especially when there is a high share of single wagonload traffic.
As a result, railway undertakings often have difficulty pricing orders and optimizing their profit. In addition, it may be challenging to ensure invoiced amounts are a correct reflection of actual delivered services, such as the transportation of a single wagon over a particular track or across a particular region.
How we help
Ab Ovo helps railway undertakings to reduce the complexity of working with partners and subcontractors and improve their overall profitability.
Railway undertakings often have difficulty pricing orders and optimizing their profit. They face the challenge to ensure invoiced amounts are a correct reflection of actual delivered services.
The benefits
Ab Ovo’s Subcontractor & Yield Optimization Solution helps Railway undertakings:
- Efficiently generate, manage and check procurement contracts. Saving time.
- Directly connect customer sales / orders to procurement orders. So that it is always transparent which load was transported by whom.
- Break-down cost for entire trains, to costs per order / wagon, allowing for easier invoice validation and reducing unnecessary spend.
- Determine what the actual costs of transportation is, and subsequently optimize order pricing and operational profit.
- Do usage analysis on procured capacity and determine whether long term contracts are still appropriate and competitive.
- Compare the cost of a contractor against internal options and decide whether it is more cost-effective to outsource.
Save time by efficiently generate, manage and check procurement contracts.
Features & capabilities
Ab Ovo’s Subtractor & Yield Management Solution consists of a number of capabilities that are a included in our Core Rail Ecosystem, our Rail Cargo Planning tool or available as separate module or one-off analytics projects.
| Core ecosystem | RCP | Module | Analytics | |
| Management of contracts for subcontractors | O | O | ||
| Automated workflows for order planning and execution (procurement order generation) | O | |||
| Integration of procurement contracts and orders. | O | |||
| Capacity planning based on forecast and/or actual demand | O | |||
| Usage analysis on procured capacity | O | O | O | |
| Benchmarking of procurement costs against internal costs / alternatives | O | O | ||
| Decision support for outsourcing / procurement | O | O |
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