Using Analytics to Reduce Freight Cost

By: Ryan Warner, Business Analytics

Ryan Warner

Director, Data Analytics

Using Analytics to Reduce Freight Cost

Monitoring freight and logistics spend is often frustrating due to the complexity and number of moving pieces. Some organizations might have a thousand negotiated lane rates while others experience rapid changes in the origins and destinations leaving undefined rates for shipping lanes. Accessorial fees and add-ons with little or no detail are frequently a source of dissatisfaction.

Without the significant amount of time or robust process needed to monitor 100% of transactions, your freight spend could include 10% or more in overbillings. We’ve found that this could be the case whether an organization handles freight internally or uses a third-party logistics firm.

In addition to billing errors, a significant savings opportunity comes from improving the process. Most freight auditing programs don’t provide on-going monitoring, and don’t address whether expenditures make business sense. With our help, knowing that carrier ”X” picking up from location “Y” has an 86% likelihood of incurring accessorial charges, significantly changes the value proposition of a compliance audit provider. In addition to ensuring what you are billed for is correct, our machine learning models provide actionable insights that even line managers are often unaware of.

Clearview Consulting developed an easy-to-implement solution that ensures the integrity of the freight spend by:

Freight Billing Audit – Identifying past freight overbillings for recapture.

Business Validation – Probe into whether the structure of freight charges and activities can be improved.

Freight Invoice Monitoring – Review 100% of freight charges rates prior to payment.

Clearview customizes an approach for each client’s business to include any number of variables and/or accessorial charges using analytics. Our approach supports internal controls, provides increased transparency and can drastically reduce costs going forward.

Some of the most recognizable organizations in the country have partnered with Clearview for our Active Supplier Management solution to leverage advanced analytics and go beyond traditional billing/invoice compliance audits.

For questions or discuss how your organization could benefit from a modernization of supplier management support contact Ryan Warner at rwarner@cviewllc.com.

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