Camila Affonso discusses bidding strategies to reduce transportation costs

Retailers have a major opportunity to reduce transportation costs given the drop in diesel prices. Fuel prices fell 34% over the trailing 12 months, according to July data from Brazil's National Agency of Petroleum, Natural Gas, and Biofuels (ANP).

Camila Affonso, partner at Massimo Consulting and a consumer goods specialist, explains in a Segs article the importance of having the right methodology to make the bidding process more efficient.

"Renegotiating with current suppliers has the advantage of keeping an experienced team in that operation, but the disadvantage of less significant price reductions. On the other hand, by running a bid and attracting several companies interested in the contract, the retailer may be able to secure more competitive costs. In this case, they will need to implement the supplier change, stabilize the operation, and develop it until it reaches the ideal point," explains Camila Affonso.