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Freight Auditing |
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Background: Freight Invoice Payment and
Freight Audit has been always challenge to industry. This logistics process
is manual in most of organizations (Specially in Asia Pac region). Though, it
has a significance percentage share in overall Logistics Cost. Industry Data
speaks, ~6-10% freight spend share in overall Logistics cost. Off late
industries has realized the opportunity of saving freight cost from this
manual driven process.. Problem
Statement: Freight Contracts are generally
not entered in legacy system due to complexity and standardization with
material Purchase Order process. Contracts are generally stored with Freight
Manager as uncontrolled document with limited accessibility to other users.
Retrieval of these contracts becomes a big challenge at the time freight
payment and Freight Audit Process. Amendment to these contracts and
‘Contract Approval’ mechanism is manual. The second biggest
problem is Freight Invoice registration is not possible in legacy system for
the purpose of invoice verification (Pre payment activity). A Freight Invoice
may have various freight elements such as Freight Destination, Freight
Origin, Freight Supplier information, Air ways Bill details, Bill of Entry
reference, Shipment type and nature, Origin charges and destination local
charges etc. Passing a Freight Invoice, just by creating a Journal Voucher in
Account Payable, put all Freight invoice Line level information of no use.
The last problem is encountered at the time of Freight Audit
process. Auditing hard copies of freight invoices with uncontrolled copies of
contract becomes challenge.. Proposed Solution: We propose automation of process
by involving a tool (Software) to capture and verify Freight Invoice against
Freight Contract. Electronic Invoice upload for freight Invoice and
interfaces with legacy system makes it touch less process of Bill Payment
process (Supply Chain Verification and Approval and Account Payable part).
Freight spend report module gives appropriate information to optimize
on Logistics Cost such as Inbound Domestic Freight Expense,
Import/Export - Air/Sea Expense, Route wise expense, Freight Supplier wise
Expense, Zone and Shipment wise expense, Deviations in Freight Invoice found,
Supplier Delivery Rating in terms of Invoice Error and Delivery performance
etc. Why us: We have our Freight Verification
process and Freight Audit tool available and validated after deployment with
various big name organization in recent past. Our team is having Business
Process Experts and IT professionals capable of customizing this process and
tool as per your need. Post |
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