Inbound Logistics: The Power of a Transportation Management System and Freight Management Services

Welcome to The Value of a TMS and Logistics Services for Effective Inbound

Freight Management Webinar

Presented By

READ MORE ABOUT FREIGHT BEST PRACTICES AT THE CERASIS BLOG AT http://cerasis.com/blog

Welcome!

The Value of a TMS and Logistics Services for Effective Inbound Freight Management Webinar

IntroductionAttendee Screenshot

To Listen by phone vs. listening through your computer simply dial:

• Phone: +1 (702) 489-0001

• Access Code: 515-252-278

• Audio Pin: Provided once you join meeting on panel.


IntroductionPresenter: Adam

Robinson, Marketing Manager

Company: Cerasis

Adam Robinson oversees the creation and execution of the marketing

strategy for Cerasis.

Cerasis is a non-asset based third party logistics service provider who specializes in freight technology solutions and integrated

freight management services.


Webinar AgendaThis 45 to 60 minute webinar will cover the following material around inbound freight management:

• An Introduction to the Landscape of How Big is the Problem of Inbound Freight Management

• 3 Challenges Logistics Executives Face in Inbound Freight Shipping• 8 Objectives to Consider and 4 Areas of Focus for Confident Inbound Freight

Management• How TMS Automation Aids in Inbound Freight Management and What To Require in

a TMS• The Advantage of Combining both expert service and technology for Inbound Freight

Management• Conclusion and wrap up• Q&A Session


State of Inbound Freight

How big is the problem of inbound freight management?

Shippers report inbound freight management is

a key focus point.

75%40%

More than 40% spent on inbound

shipping.


State of Inbound Freight

How big is the problem of inbound freight management?One Company Example Showing the

Sheer Volume:• $18 Million in Inbound Freight• Over 100 Carriers, despite

negotiations to have only 5 preferred

90%

90% of Shippers surveyed in Aberdeen

say they are not prepared to manage

inbound freight!


3 Inbound Shipping Challenges

Lack of Visibility

The Manual Process of Inbound Freight Management

• Where is the freight?

• Piecing together information from internal paperwork to get info such as tracking, Bill of lading, etc.

• Going to multiple Carrier Websites to make phone calls• Putting together comprehensive reports

• When will it arrive?• How much will it cost?

“It gets there when it gets

there.” =



Lack of Control• Companies develop routing guides and

plans for suppliers but have little control if they are followed and no way to enforce efficiently

• Most POs are “Ex Works” (EXW) & buyer pays inbound freight costs & takes on risk of delivery

• Focus is on Outbound for customer service, meaning resources for inbound are limited.



Rising Freight CostsAberdeen Research GroupRates Survey Last 2 Years

• Increase of 14.5% in truckload rates• 11.5% increase in LTL and ship rates• 15.1 % increase in international air rates

• Reductions in staff size• Smaller IT services budget• Increase centralization of shipping

Other areas of Cost Savings Logistics Managers Must Consider:


8 Objectives for InboundFreight Programs

Inbound Freight Management is An Area Each Shipper Can Improve

Savings in inbound freight go directly to

the bottom line!

Management of inventory is

critical to business success

Inbound freight involves the management and control of freight from:•Domestic and offshore vendors,•Consolidation of vendor shipments,•Direct shipments to Retail sites and customers at home, multiple shipping points, and•Warehouse cross dock opportunities for Retail replenishment and backorder processing.



Effective Inbound Freight ManagementIncreased customer demand requires better inbound flow of product for improved customer service!

Management of Inbound Freight affects:• Inventory Control• Overall Warehouse Productivity• Customer Service Levels

Factors Increasing Difficulty of Managing Inbound Freight:• Rising Fuel Charges• Increase in offshore product

sourcing• Carrier changes & rate increases• Multi-Channel



8 Inbound Freight Objectives1.Reduced freight costs and improved “bottom line”2.Improvement in on-time deliveries3.Reduction in purchasing lead times4.Less handlings and damage5.Lower inventory levels and reduced carrying costs6.Providing maximum visibility into the process7.Improvement in warehouse productivity8.Increased customer service


4 Areas of Focus to Meet Inbound Freight Goals

4 Key Issues or Areas that Warrant Attention In Inbound Freight Management

•Vendor Compliance•Freight Paid vs. Freight Collect•Visibility and System Control•Vendor Relationships



1. Vendor ComplianceA Vendor Compliance Program (VCP) should:1. Define vendor

expectations2. Measure and report

on performance against expectations

3. Insure consistency and reliability in inbound freight

management

Key Performance Indicators in a VCP:• On-time delivery• Meet damage and

accuracy demands• Providing proper

paperwork

MISSION CRITICAL: PROVIDE & CONTROL THE ROUTING GUIDE



2. Freight Paid vs. Freight Collect

Converting from prepaid freight to freight collect increases:• Cost Reductions• Overall Control

Shippers have realized the words “Free Freight” Raises a RED FLAG!



3. Visibility and System ControlVisibility allows for:• Control of inventory

movements• Visibility into Freight

data• But…….

…There must be an information system to manage the complex processes, such as a

Transportation Management

System or TMS



4. Vendor Relationships

Trust allows for collaboration and

transparent communication, giving you the

keys to success.

Benefits of trusted relationships:• Reduced inventory

& safety stock• Improved

warehouse operating costs

• Enhanced customer service


TMS for Inbound FreightAutomation

Transportation Management SystemMake sure your TMS that is:

• Carrier neutral• Encompasses the entire shipping ecosystem• Has a Web-services architecture • Is permission based • Has a powerful, flexible rules engine



5 Must Have Automation Features in a TMS



1. Real Time Freight Rates:No more theoretical savings, but hard ROI

based on live, vendor neutral access to real-time market rates



2. Organizational ControlGain Control Using a TMS that:• Has a rules engine, based

on optimized plans and routing guides

• Is flexible to accommodate custom business rules

• Allows for user control• Usability matches logistics

expertise



3. Visibility and Data Analysis ReportingFor true shipment-level visibility and reporting, a TMS must have:• Carrier neutral, mode-agnostic data repository.• Up to date trends and patterns• Forecast supply and demand of

carriers to make real-time decisions based on actual data rather than guesswork.



4. Speed and Scalable

A TMS Should Support:• Rapid Growth• Ease of use with little training• Practical & delivers results

immediately• Work as effectively at 2 inbound

shipments per day or 100• Provides long term sustainable ROI



5. Dedicated Technology and Up to Date Web Standards

A Cost Effective TMS Must:• Be based on open standards & SOA

architecture to allow for integration• Allow for rapid deployment (typically

web-based/cloud)• Dedicated technology team who

develops freight technology.


Technology + Expert Logistics = Success!

Effective Inbound Logistics is Truly a Combination of Technology and Expert ServiceTMS solutions allow • All in the inbound freight ecosystem to be

managed.• Control Costs• Gain visibility• Increasing control over such decisions as

carrier choice, routing, and price• Ensure compliance by suppliers and

employees to the routing guide



Inbound Logistics & Integrated Freight Managed Services

Integrated Freight Management Services alongside a TMS:• Address the problem of supplier compliance• Integration of players into the new program ecosystem guided by expert logisticians• Allows for carrier relations management and upkeep in the TMS• Easy exchange of information about each shipment for better freight accounting, claims, and risk compliance



Best Practices To Expect for Inbound Logistics from a Freight Management Services Provider

In order to effectively manage all aspects of inbound logistics, a managed service must be able to:• Provide the ability to track and trace shipments for multiple customer roles• Process shipment for all modes of transport• Demonstrate logistics expertise in carrier relationships• Manage shipment scheduling, processing and execution• Manage contract negotiation and renewals• Monitor and enforce business rules• Seek dynamic, vendor-neutral freight bidding for transportation, as needed• Provide comprehensive real-time reporting• Understand and manage reverse logistics• Provide full freight claims management• Provide freight accounting services


Cerasis: Your Inbound Freight Management Partner

Who is Cerasis?• Founded in 1997• Third Party Logistics Provider Specializing in Freight Management• State-of-the-Art Cloud Based TMS and Mobile TMS Application (Android, Apple)• Comprehensive Freight Management Services Including, but not limited to:

• Analysis and Audit of Existing Shipping Practices and Carrier Rates• Carrier Rate/Rules Negotiations and Bidding Services• Contract Management• Inbound Routing and Compliance Program• Volume/Spot Quotes, Truckload Routing (dedicated lanes & brokering)• Invoice Auditing and Consolidated Weekly Billing• Claims Processing and Maintenance• Shipper Compliance Auditing

• Solutions Custom Tailored to Meet Your Needs



Modes Supported LTL North America FTL Intermodal Specialized Dedicated Transportation

Services FedEx Small Package



Cerasis Inbound Freight Solutions Your team needs more time to focus on core competencies. Solution: Cerasis can give your team back valuable time by handling some of the time consuming duties associated with freight operations including routing inbound shipments , scheduling pickups, shopping for volume/spot quotes, re-routing shipments in transit, auditing invoices, resolving invoice discrepancies, and processing claims.

Suppliers don’t always comply with our routing guide. Solution: Cerasis Freight Desk will route your inbound shipments ensuring they are routed to your specifications at the best possible rates. There may be situations in which you would prefer to route inbound shipments yourself and with our system, you have that option.

Need ability to monitor compliance for all shipping locations. Solution: Our least cost compliance feature requires shippers to input a reason when they do not ship via the least cost carrier. Our Least Cost Compliance Report sorts non-compliant shipments by reason and displays lost savings data.



Inbound Freight Solutions (Cont.) Need for standardization of procedures. Solution: Cerasis will partner with you to implement a process designed to get all of your locations on the same page; following the same procedures.

Need more visibility and control over all shipping operations for all locations. Solution: Cerasis TMS with organization views.

No easy way to determine impact of freight costs on customer profitability. Solution: Freight expenses can be sorted by customer and exported into Excel for analysis.

Auditing freight bills and researching variances is a drain on resources. Solution: Cerasis will audit your freight bills using a three step validation process that enables us to resolve carrier errors before you are billed and obtain supporting documentation for invoices that have been correctly adjusted. You will receive a pre/post audited weekly consolidated invoice from Cerasis.



Inbound Freight Solutions (Cont.) Accounting has to spend time allocating freight costs to G/L accounts. Solution: G/L codes will be loaded into system and assigned to shipments at time of processing. These codes will follow the shipment all the way through invoicing and reports can be sorted by these codes and exported into Excel for further analysis.

Shipment handling expenses not being recouped. Solution: Cerasis incentive feature allows you to add a handling charge to the freight cost that remains transparent to your customer.

Buyers need a quick way to estimate freight charges for raw materials and supplies purchases and sales staff needs a quick way to estimate freight charges for customer bids.

Solution: Quick quote feature in Cerasis TMS.

Customers have to contact sales or shipping staff for delivery updates, tracking info, and POD’s. Solution: Customers will receive automatic shipment notification emails with tracking links.



Cerasis TMS = The Cerasis Rater True lane based rating engine. Shipments rated and presented on screen in least cost order with carrier transit and limit of liability

information. Shipment control panel to expedite shipment processing and auto-schedule pickups. Guaranteed shipment costs allow you to bill product and freight costs simultaneously without waiting for

the freight bill! Quick quote feature for sales and purchasing personnel. Complete visibility of all shipment activity. Inbound receiving report to assist with planning and scheduling. Powerful tools and reports to help you manage trends and ensure compliance. Organization views to facilitate management of all shipping locations. Online invoice center provides electronic invoice access, adjustment requests, and payment options

enabling you to go “paperless”. Customer satisfaction tools including automatic email shipment notifications with tracking links.



Cerasis Process Approach Customize a solution designed to meet your specific transportation needs

Execute a partnership agreement Negotiate rates with carriers on your behalf Conduct a commodity review Collaborate with your management team to implement our custom solution Follow up to ensure your staff is fully trained and compliant Provide you with outstanding service and support on an ongoing basis Conduct quarterly account review meetings



Cerasis TeamAn Exceptional Group of Experienced Freight

Professionals Striving to Exceed your Expectations

• Dedicated Customer Service Representative• Freight Desk• Claims Specialist• Carrier Relations Group• Implementation Team



Cerasis Technology In-House IT Department Integration XML Web Services Custom Reports


ConclusionConclusion of Effective Inbound Logistics

Management

• Improved Visibility• Controlling Processes• Better Cost Management• Impact Bottom Line• Improve Operations

Technology + Services =


Q&A

You may type your questions in the chat area and we will

answer as many as possible.


THANK YOU!

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Inbound Logistics: The Power of a Transportation Management System and Freight Management Services

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Transcript of Inbound Logistics: The Power of a Transportation Management System and Freight Management Services