Freight Analysis
Freight Audit and Account Management Services
Freight checking systems can be complex and extremely resource intensive due to the high volume of transactions, and unfortunately errors tend to be repeated over time. Freight audit identifies financial leakage caused by the application of incorrect measurements, incorrect application of rates, fuel levies and contracts, duplicate consignments within a single invoice, incorrect application of additional charges, overcharging arising from split deliveries, and returns and services charged but not provided.
Profectus' specialised freight team works toward reducing direct transport and administration costs as well as improved customer service by providing our clients with the appropriate systems, processes and procedures that will immediately improve current transport management and administration practices, and ultimately self-fund the implementation of best practice transport management solutions.
Freight Account Management (FAM)
FAM provides a logical path that enables a smooth transition to more complicated Best in Class solutions, such as RCTI (Recipient Created Tax Invoice) and TMS (Transport Management Systems). This is a low risk solution that enables process and system improvement, as it quickly identifies potential issues and overspending, and aims to resolve freight overspend. The analytical procedures and reporting tools of the process are utilised to monitor subsequent results and implement immediate solutions, along with the provision of practical statistics that will enhance the capabilities of your current freight team. The service links transport costs to customer orders and provides the capability to understand activity based costs, and effectively reduces chaos in the management of your freight accounts. The analysis provides training and support for freight and account teams, and is valuable in its ability to implement immediate solutions.
Benefits of the analysis include:
- identifies overcharging by your freight providers – usually between 1-5% of annual expenditure
- identifies opportunities to improve the management of these freight providers
- develops freight based usage profiles and activity costs to ensure customer freight charging processes recover the actual freight costs
- tests current freight strategies to ensure business objectives are achieved
- provides a comprehensive range of statistical reports which complement internal reporting functions, and are tailored to communicate the effectiveness of current freight account checking and administration processes
- identifies immediate cash savings opportunities – usually between 5-20%, and creates potential financial inflows to add to current year net profit
- provides suggested system and procedural improvements to mitigate future inaccuracies, and potential improvements
- reduces costs, improves operational performance and ensures compliance.