Credit Crisis leads to better control on freight cost

Tue, 11/18/2008 - 10:01

The global financial crisis will lead to radical changes in the structure of the financial control in the supply chain, with 100% control from transportorder to payment on carriers invoices, according to a survey of multinational shippers by the market leader in freight invoice control, ControlPay in Breda and Kyiv.

ControlPay did an electronic anonymous survey on 115 respondents (comprised of multinational shippers and other mainstream corporate entities) to know the views of the supply chain and financial professionals of the multinational shippers on the impact of the latest phase of the credit crisis on the industry and its effect on corporate behaviour.

Respondents believe that the crisis will lead to a stronger and better focus on the cost structure of the supply chain. As a result there will be a stronger control of the transportation cost.

Respondents believe that this will lead to cost savings on the total freight spend from 2 till 8%, since control is often randomly performed, or even not at all.

Karel Kinds, CEO of ControlPay commented:
"The credit crisis has entered a new phase in invoice audit for Multinationals in Europe and Asia. What started as a opportunity for better control on the freight cost, has been transformed, into a much more serious financial opportunity to a permanent better visibility and control on the total freight cost. We already see that intensive efforts are being made to reform the freight invoice control; many are questioning the chances of their business models, focus on the business and sourcing out the invoice audit to the professionals."

For more information visit the website www.controlpay.com
or contact ControlPay 0031 76 599 1590