Company Profile

A chemical company wanted a process that reduced the back office aggravation in dealing with

freight payment of transportation bills. Annually, thousands of invoices were generated by multiple

carriers that included rate variances, acceptations, and missing bills of lading which resulted in

unhappy carriers demanding their past freight charges. Couple that with the aggravation of the

Logistics Manager wanting better performance measurement on carriers and Accounting Managers

wanting better cost to product information, and the problem developed into a real business

roadblock.

With the average cost of $10 per freight bill for the chemical company to process a freight bill

internally, the Simplified Freight Pay and Audit seemed like a cost reduction and a data enhancement

for all departments.

Case Study

Structural Enhancement

Reduced Errors

Reduced Labor

Pin-Point Rate Access

Zero Sum Accrual Variances

Simplified’s audit and publishing verified freight charges process has improved the funding regimen by providing the relevant information at the fingertips of the appropriate employees at the chemical company.

Automation and outsourcing of data collection has reduced key entry error for the chemical company. Furthermore, they have a known process that Simplified requries of all carriers upon presenting a bill for payment that far exceeds their internal process. No errors translate to accurate costing and forecasting for the chemical company.

Utilizing Simplified has reduced the man hours dedicated to this “internal” process of reconcilliation and carrier incoming calls. Furthermore, with Simplified’s exception process, no bills are paid without verification from the chemical company, allowing for peace of mind and no duplicate payments.

All departments at the chemical company now have access to rates on all past and present shipments for internal verification, forecasting, and auditing. Furthermore, now the logistics department is freed up from these types of internal inquiries.

With the technology footprint on the front end with Simplified, now the chemical company knows the cost of freight shipped and not paid for on the first day of every moth, allowing for the most accurate

the Simplified Freight Payment

Solution provided web based

technology, improvements in the

accrual process and accuracy, and

direct access to freight rates on every

shipment.

The Issues

1. Rate Variances

2. Missing Bills of Lading

3. No Performance Information

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Case Study

SummaryThe chemical company was able to realize two forms of savings. The first was the opitmization on

the LTL cost and the second was the process savings on the freight payment process. Additionally,

the following areas were improved.

Furthermore, the chemical company now can focus on running the business knowing the freight

payment process is sound and in compliance.

• Elimination of duplicate payment to carriers

• Reduced internal employees time spend on transportation charges reconciliation

• Improved visibility for all departments (rate specific)

• Enhanced business intelligence reporting of all critical data

Case Study