"Shenma" first open tender for sea transportation business to save freight 1,071,000 yuan
Recently, Shenma Group Co., Ltd. took a significant step by conducting its first quarterly public tender for maritime transportation services. After evaluating bids and delivery methods, four freight companies were ultimately selected to handle the group’s fourth-quarter maritime logistics. This new approach has resulted in a cost saving of 1,071,000 yuan compared to previous arrangements.
Shenma Group typically relies on freight companies and shipping lines to transport its export goods. These freight firms either directly tow cargo to the port or use intermodal transport—moving goods to a train station and then to the port via rail—before handing them over to the shipping company for final delivery. Traditionally, the group used a “single move†model, where each sea shipment required a separate tender. Due to small cargo volumes, this often made the transport unattractive to companies, leading to higher costs and frequent changes in service providers, which caused inconvenience for customers.
With a significant increase in export volume this year, the group decided to refine its tendering process. The goal was to reduce transportation costs while ensuring timely delivery. To achieve this, Shenma explored a new bidding model.
Since April, senior managers from Guxin Mine, along with representatives from the Commission for Discipline Inspection, Enterprise Investment Management, and the International Trade Business Department, conducted extensive visits to cities like Qingdao and Zhengzhou in Shandong Province. They engaged with freight and shipping companies to assess current transportation costs and limitations. Following thorough research, the group opted for a “one-vote system,†where only the freight company is tendered, and it is responsible for selecting the shipping line. This approach takes into account the quarterly adjustments in shipping rates and sets the tender cycle to one quarter.
During the tendering process, the company prioritized direct towing over intermodal transport, ensuring that the same pricing was applied to both options. After evaluating the bids and delivery methods, four freight companies—including Henan Shitong International Logistics Co., Ltd.—were selected to manage the group’s maritime transportation for the fourth quarter. Following the open tender, freight rates for 23 of the group’s maritime routes have decreased, reflecting the success of the new model.
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