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Case Study Hinterland on Demand

Initial Situation

Partner is Freight Forwarder (in the top 10 in the world), Germany. The Freight Forwarder must solve the following problem. They have signed a contract with a logistics company for a dispatching service to handle their overseas relocation orders. The volume is 1000 to 1200 container/year in entire Germany.

For the hinterland transportation service (import and export) they offered the logistics company a fixed price on zip-zone basis. For this service, the freight forwarder used their own ocean freight department. 

That did not work well because:

  • Lost money for each hinterland shipment - Had more costs than agreed with the client
  • Handled freight as for industrial clients
  • Could not meet the deadline for deliveries. Had to pay for waiting times for transportation staff and got into trouble with the client
  • Could not implement the new SOLAS regulations in time
  • CPA services that were not executed were charged
  • The entire department loses money

The management decided to handover this special business to tep-IT in connection with the client.

The following objectives had to be met in the first step:

  • Setting up a tariff for the hinterland service
  • customization of the tep application
  • train employees on the standard for ocean freight shipments
  • understanding the trucking business and cooperate with the vendors



tep-IT received an order with the following objective:

  • Customizing the tep-IT execution software
  • Consultancy
  • Dispatching of hinterland transports
  • Building a vendor pool for removals
  • Compliance check of vendors
  • Negotiate a zip-zone tariff
  • Converting the sales tariffs and upload in system
  • Training of Freight Forwarder Staff on using the application
  • Implement SOLAS regulations into the system


The client was simultaneously tasked with the following:

  • Negotiate a zone-tariff with logistics company
  • Agreeing on liability terms
  • Agreeing on payment terms


tep-IT developed and modified the Transport Execution Platform. The logistics company was registered as a new customer and their staff was given access to the application. Every new user got the import and export manual with their registration. The SOLAS rules were integrated into the workflow. A database of scales and all customs offices was integrated into the system. The client's tariff was restructured and implemented. A pricing tool for sales was implemented.

After 2 weeks of customization, the client and the logistics company were able to use the system. The client could offer the logistics company a hinterland tariff which is below the sales rate in all zip-zones. Long-distance destinations (southern Germany) are approached by train, local transportation takes place by road and are two combined 20’ on one chassis. tep-IT trained the users in the ‘train the trainer program’ on the job. Logistics Company assigned all transports through the application and is getting an order conformation. With the tep-IT Application, the handling of this order takes only one minute because the system is reviewing and checking all data before it is sent to the transport company. The application provides all information about SOLAS/VGM data and stores the weight note inside the system. After a container is picked up, the tracking system sends the client the container number directly. tep-IT is handling the Track & Trace system and sends data to the Logistics Company via the application and by e-mail. After the container is delivered, the system generates the transport bill.

The Freight Forwarder got a gate status for the entire special transport group (removal & fairs + exhibitions). In the next step, the Freight Forwarder is integrating the whole special transport section in the system – nearly 10.000 containers/year.


The Freight Forwarder is now growing their profit because of not losing any more money on transports, they can now control the service quality easily. Staff is more motivated because of easier tasks, better quality, and less complaints from their clients. The department works faster, more reliably and – after getting the gate status – is profitable.


tep-IT procured the contract with the logistics company. tep-IT and the Freight Forwarder have built a partnership for this contract in which tep-IT is doing the operational work by using the execution application and the partner controls the back office. tep-IT provides the staff for forwarding and shipment control (track and trace). The Freight Forwarder loses no more money and has a better relationship with their client. They have taken the opportunity to turn an uneconomical business into a profitable one.

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