LOGISTICS & SUPPLY CHAIN
The world's Top 100 logistics companies are growing by an average of 3.7 percent a year, nearly twice that of the entire market, and are squeezing out smaller competitors. The development is creating a major challenge for small and mid-sized companies. Even though there is good opportunity to offer unique, complex and holistic logistics packages in submarkets and niches, only few of the small and mid-size companies are ahead of the game because of their advantage in clear business insight and data analytics to fine tune their business.
Current Industry Challenges
- No or Minimal tracking on delivery performance
- Unable to find service level distribution patterns and trends
- Lack of root cause analysis to identify service level failures
- No visibility into shipment volume trends
- Failure in achieving billing accuracy
- Unable to identify issue patterns in on-time delivery
- Identifying significant volume changes for agents
- Cost comparison between vendors in region
- Cost per pound and Cost per mile trends
- Fuel surcharge variation comparisons
- Identifying vendor failure history
- Bucket and alert aging of invoices
- Compare Invoice amounts with third party invoice companies
- Compare invoice Aging with third party invoice companies
- Prepare Statement of account with ease
- Handle multiple currencies
- Get current billing status
- Disconnect between Cost and sales data
- Historical currency conversion not available
- Missing “bill to” data
- Manual process in basic financial reports(P&L, CF, Balance sheet, etc.)
- Disconnect between financial data to other functional departments
Impact
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- Loosing focus in performance improvement
- Inability to identify the under-performing functions / bottlenecks
- Unable to fine-tune service level load distribution
- Delay in taking corrective actions to fix on-time delivery failures
- Failure to handle shipment volume trends
- Difficulty in avoiding billing accuracy issues
- Missing data points in understating the operations big picture
- Loosing edge on competition
- Unable to negotiate price at right time
- Missing data points to take disciplinary actions
- Loosing opportunities to control vendor fuel surcharges
- Failure to identify the trend of cost per mile, cost per pound
- Redundant effort
- Paying more to vendors than required
- Delays following up pending invoices
- Extensive manual work to consolidate invoice amounts and aging
- Human dependent and error prone verification system
- Financial and efficiency loss in billing process
- No or minimal visibility on forex impact
- Huge turnaround time to analyze financial KPIs
- Human dependent and error prone process
- Financial loss because of missing data
- Minimal visibility on other functional areas that effect finance
- Delay in business actions
- Unable to identify revenue trends and patterns
Solutions
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- Shipment counts by region, client, date with benchmark alert system
- Vendor-facing and customer-facing Service Issues/Failures
- On Time Delivery with Drill down to waybill level
- Revenue/GP by customer, mode and lane
- Service Level distribution
- Activity-based costing
- Billing Accuracy
- Cost comparison between competitive vendors
- Volume trends
- Service failures and on-time delivery patterns
- Cost per pound trend on pickup and delivery agents
- Cost per mile for Truck load carriers
- Benchmarks and Alert system
- Immediate cost savings on vendor payments
- Improve customer satisfaction by reducing service issues
- Huge reduction in manual effort
- Detect opportunities to reduce cost per pound and cost per mile
- Precise data points to take disciplinary actions
- Aging invoices report by dynamic buckets
- Automatic comparison of Aging and Invoice amounts with third party invoice service providers
- Statement of account
- Invoices in multiple currencies
- Drilldown to invoice level
- Profit and Loss report
- Balance sheet
- Cash flow statement
- Customer revenue analysis
- Cost and sales consolidation
- Currency conversion and history
- Ability to fix “Bill to” information
- Shipment count and revenue analysis
Benefits
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- Clear view of underperforming functions and bottlenecks
- Ability to fine-tune service level load distribution
- Fix on-time delivery failures without delays
- Complete insight on operational issues
- Detailed volume trends and patterns
- Achieve billing accuracy
- All operational KPIs aligned with company objectives
- Remove or reduce manual efforts in day to day billing functions
- Proactive alerts to provide lead time to fix anomalies with third party invoice service providers
- Quicker turnaround time to client queries on billing statements
- Optionally, ability for customer to view his billing statements online without requesting
- Timely actions on aging invoices
- Forex conversion at finger tips
- Work reduction, performance and accuracy gain in billing efforts
- Reduction in manual effort
- Ability to address the issue before losing control
- Quicker turnaround time on financial questions and research reports
- Minimize loss of money due to missing data
- Gain financial control over all departments
- Informed financial decisions