Logistics cost savings: Setting the baseline

Pieter Kinds

Pieter Kinds

August 29, 2016 - 16:09

Many companies work with a large numbers of carriers throughout Europe or the rest of the world. This often leads to complexity in having an overview of conditions rates and agreements with carriers. This is why many companies work with ControlPay Global Freight Audit & Payment.

Thanks to our logistics background (over 14 years active), we are chiefly focused on logistics data and rate set-ups rather than quick logistics cost savings during the implementation of a freight audit and payment solution. Thanks to this unified process, often carrier rate and contract structures are simplified and unclear business rules are brought to the surface. By doing so, you put your company, across multiple divisions in full control of transportation payment.

Transportation contract complexity

Agreements between carriers and shippers come in many different forms. It depends on country, carrier, region, type of business and many more aspects. The type of transportation also has a great impact (LTL / FTL).

Often carriers apply different weight brackets, different postal code zones, different fuel surcharge percentages and so on. Next to that, accessorial costs such as waiting hours differ from carrier to carrier and varies from country to country. Also, consolidation of groupage transports per client and per postal code is not always clearly stated in contracts. With having multiple locations across Europe, language problems and interpretation are only fueling complexity of transportation. Needless to say, that contract information is often scattered across the company and hardly ever available from a single platform.

Best practise to tackle complexity

In order to have a clear overview on cost structures, agreements, and all conditions involved, it is of great importance to streamline all logistics data into a few single formats for different types of transportation services or per country. This way, all your transportation contract data will be stored on one platform and can be delivered, updated and reviewed at any single time via our web-based application.

ControlPay global Freight Audit provides its clients with the feature to benchmark your carriers using our self-built Freight Audit platform and Logistics Visibility platform. This means that you can have extensive reporting on lanes, lead times and freight rates. It supports your transportation, financial and all involved operational departments analysing the supply chain structure and helps benchmarking your carrier contracts.

About ControlPay Global Freight Audit

ControlPay provides the analyzing and benchmarking service as a stand-alone or fully integrated service with our freight invoice audit service portfolio. For more information, please contact us: info@controlpay.com

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