Pieter Kinds
October 12, 2015 - 00:00
This was a quite a challenging project for both parties considering the complexity of the flows (over 150 active carriers) and the volume of the activity (over 900,000 shipments per year). The total freight represents a significant part of the expense of the client in Europe, with roughly 120 million Euro per year. Concerning LSCM, freight represents the biggest past of the logistics costs (nearly 55%).
Outsourcing doesn't mean no involvement
Data integrity is crucial and should also be reassessed periodically. Therefore, the processing centre in Kyiv in Ukraine was audited by LSCM of the clients side to perform an operational review of the business processes to ensure that they are handled in an efficient and controlled way. "It was quite an experience to see in one room in Kyiv a team of Ukrainian employees speaking different languages and being fully dedicated to the client", commented a spokesperson on the clients side. "Other office area's are dedicated to the freight audit activities of other multinationals, operations in a wide variety of markets. The two-day visit was also the opportunity to identify with ControlPay some best practice in order to be more pro-active. As an example, a weekly tracking report is used by our entities and the Central Contract Team to follow the situation with carriers and anticipate possible issues before the month end."
"Today we have gained in terms of control of the data processed and visibility in the financial books (less unexplained variances for freight in the income statement). "The foundation has being built in this stage, leading to more efficiency. "There are still some new future projects to move ahead!"
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