Following a successful collaboration with a UK-based client on supplier relationship risk management, Kekc received a recommendation to support the client’s business partner in Northern Ireland. The retailer was looking to strengthen its supply chain resilience, improve control over transportation costs, and reduce exposure to disruptions in international trade.
The main priorities were to develop a supplier risk management strategy with a particular focus on freight rate auditing and diversifying trade routes. The retailer needed a clearer understanding of its total shipping costs, potential logistics vulnerabilities, and alternative transportation options that could help maintain reliable deliveries while protecting profit margins.
Kekc approached the project with a focus on cost transparency, supplier diversification, and proactive risk management, helping the retailer build a more flexible framework for managing international supply chain challenges.
Steps Taken
1. Reviewing Supplier Relationships and Supply Chain Risks
Kekc began by assessing the retailer’s existing supplier relationships and identifying potential vulnerabilities in its sourcing and logistics arrangements. The review considered supplier reliability, delivery performance, geographic concentration, and exposure to transportation disruptions.
The team focused on understanding how dependence on particular suppliers, regions, or shipping routes could affect product availability and business continuity. This assessment provided a foundation for identifying areas where additional flexibility and alternative arrangements could reduce operational risks.
2. Auditing Freight Rates and Total Shipping Costs
A key part of the engagement involved reviewing freight rates and the wider costs associated with international shipments. Rather than evaluating transportation options solely on quoted prices, Kekc emphasized the importance of understanding the total landed cost of goods.
The assessment considered freight charges alongside relevant additional expenses, including port handling, customs duties, insurance, storage, documentation, and other logistics fees, where applicable. By examining these cost components, the retailer could:
- identify discrepancies;
- better understand the factors affecting shipping expenses;
- establish a more structured basis for comparing logistics providers;
- negotiating freight agreements.
The approach also highlighted the importance of evaluating transportation costs against delivery timelines, cargo requirements, and service reliability to avoid choosing options that appear inexpensive but create higher overall costs.
3. Exploring Alternative Trade Routes and Transportation Options
To reduce reliance on established logistics routes, Kekc assessed opportunities to diversify transportation arrangements. The objective was to help the retailer prepare alternatives that could be used when its usual routes faced congestion, delays, rising costs, or other disruptions.
The strategy considered the suitability of different transportation modes, including sea, air, rail, and multimodal freight, depending on shipment characteristics, origin and destination, delivery requirements, and infrastructure availability.
Rather than replacing existing arrangements unnecessarily, the focus was on developing a more flexible network of options. This would allow the retailer to balance cost efficiency with delivery reliability and respond more effectively to changes in international trade conditions.
4. Establishing a Proactive Risk Management Framework
Kekc incorporated the findings into a structured approach to ongoing supplier and logistics risk management. This included identifying key risk indicators, reviewing supplier and carrier performance, and considering contingency measures for potential disruptions.
The framework emphasized the value of regularly monitoring freight costs, delivery performance, regulatory requirements, and changes affecting important trade routes. It also highlighted the role of alternative suppliers, contingency transportation arrangements, and clear procedures for responding to unexpected delays or cost increases.
This approach was designed to make supply chain risk management an ongoing business process rather than a one-time assessment.
Optimizing Supplier Relationship Risk Management Strategy by Kekc: Results
The engagement provided the Northern Irish retailer with a structured foundation for improving supplier risk management and strengthening its approach to international logistics.
Greater visibility into freight costs: A systematic freight audit approach helped establish a clearer basis for reviewing transportation charges and understanding total shipping expenses.
A more informed approach to logistics decisions: Evaluating total landed costs alongside delivery times and reliability supported more comprehensive comparisons between freight options.
A framework for route diversification: Assessing alternative transportation routes and modes helped the retailer identify opportunities to reduce dependence on established logistics arrangements.
Stronger supply chain risk awareness: Reviewing supplier relationships, geographic exposure, and logistics dependencies helped highlight areas requiring closer monitoring and contingency planning.
A foundation for long-term resilience: The resulting framework supported a more proactive approach to supplier performance, freight cost control, and preparation for international trade disruptions.
Through this engagement, Kekc extended its supplier relationship risk management expertise to a new client through an existing business recommendation. By focusing on freight rate auditing, total landed cost analysis, trade route diversification, and proactive risk assessment, Kekc helped the Northern Irish retailer establish a practical foundation for more resilient and cost-conscious supply chain management.
