This is an example report. Northbridge Components Ltd is a fictional company and every figure is illustrative. It shows the format and depth of an ADB Freight Cost & Spend Audit. It is not a prediction of the savings your business will achieve.
Northbridge Components Ltd (fictional) · Audit period: January to June · Prepared by ADB Logistics Consulting
1. Management executive summary
We reviewed 148 shipments covering six months of freight activity, with total freight spend of £412,600 (around £825,200 a year). We identified five evidenced opportunities worth an estimated £41,400 a year, about 5.0% of annual freight spend.
The two largest opportunities, avoidable air freight and a price gap between forwarders on the same lane, can both be acted on within 30 days without changing suppliers. Three of the five findings need no negotiation at all, only internal process changes.
2. Freight spend analysis
Spend by mode
| Mode | Shipments | Spend (6 months) | Share of spend | Average per shipment |
|---|---|---|---|---|
| Ocean (LCL and FCL) | 72 | £214,300 | 52% | £2,976 |
| Road (UK and EU) | 64 | £118,900 | 29% | £1,858 |
| Air | 12 | £79,400 | 19% | £6,617 |
| Total | 148 | £412,600 | 100% | £2,788 |
Air freight is 8% of shipments but 19% of spend. Its average cost per shipment is 2.2 times ocean’s, which is why mode choice is the first place we looked.
Spend by forwarder or carrier
| Forwarder or carrier | Spend (6 months) | Share |
|---|---|---|
| Forwarder A (ocean and air) | £186,500 | 45% |
| Forwarder B (ocean) | £107,200 | 26% |
| Road haulier C | £84,600 | 21% |
| Road haulier D | £34,300 | 8% |
3. Prioritised cost-reduction opportunities
Ranked by estimated annual saving. Savings are annualised from the six months reviewed and are only quantified where the data supplied supports it.
| # | Finding | Evidence | Est. annual saving | Confidence | Effort |
|---|---|---|---|---|---|
| F1 | Premium air freight that could have moved by sea | 11 air shipments of non-urgent replenishment stock on the Shanghai to UK lane; order dates show 5 to 9 weeks of lead time was available. | £14,200 | High | Low |
| F2 | Same lane, two forwarders, 18% price gap | Rotterdam to Grangemouth LCL: Forwarder B charged on average 18% more per CBM than Forwarder A for comparable volumes and service. | £9,800 | High | Medium |
| F3 | LCL shipments that should be consolidated or FCL | Weekly LCL bookings from the same Ningbo supplier regularly exceed 15 CBM per fortnight, above the typical break-even for a 20ft container. | £7,400 | Medium | Medium |
| F4 | Fuel surcharge above the agreed mechanism | 38 UK road movements carry a fuel surcharge 3 to 5 points above the percentage implied by the index in the rate agreement. | £6,900 | High | Low |
| F5 | Repeated waiting-time and tail-lift charges | Waiting-time charges on 21 deliveries to the Livingston site, concentrated on Monday mornings; tail-lift charged on 9 dock deliveries. | £3,100 | Medium | Low |
| Total estimated annual saving | £41,400 |
4. Charge and invoice findings
Where supporting invoices were supplied, we also checked charges line by line. In this example:
- Two duplicate invoices from Road haulier C for the same collection (value £1,140), recommended for credit.
- Port congestion surcharge applied to three Rotterdam shipments after the surcharge period had ended.
- Currency conversion on USD-denominated air invoices applied at a rate about 2% worse than the invoice-date market rate.
One-off recoveries like these are listed separately and are not included in the annual saving total.
5. 30/60/90-day action plan
| When | Action | Owner | Linked finding |
|---|---|---|---|
| Days 1–30 | Introduce a sign-off rule: any air booking for stock with more than 4 weeks’ lead time needs purchasing manager approval. | Purchasing | F1 |
| Days 1–30 | Raise the fuel surcharge discrepancy with Road haulier C, citing the index clause, and request credit for the audit period. | Logistics | F4 |
| Days 1–30 | Claim credits for duplicate invoices and the expired congestion surcharge. | Finance | Section 4 |
| Days 31–60 | Request revised LCL pricing from Forwarder B with Forwarder A’s rates as benchmark, or move the lane. | Logistics | F2 |
| Days 31–60 | Move Livingston inbound deliveries away from Monday mornings and book dock slots. | Warehouse | F5 |
| Days 61–90 | Trial fortnightly FCL consolidation with the Ningbo supplier for one quarter. | Purchasing and logistics | F3 |
| Day 90 | Review results against this report and confirm savings achieved. | ADB and client | All |
What you get in a real audit
- A full written report in this format, based on your own data
- A management executive summary and prioritised savings
- A 30/60/90-day action plan
- A 30-minute results call to talk through every finding
Introductory fee £1,495 (standard fixed fee £3,500). Covers up to 150 shipments across up to 6 months of activity, the full written audit report, and a 30-minute results consultation.