US Shippers Overspent 13% in 2011 (Journal of Commerce)

A study referenced in a recent article in the Journal of Commerce focused on how inconsistent discounts, accessorial fees and service failures led to US shippers overspending by as much as 13 percent.

From the article written by Mark Szakonyi:

“U.S. shippers on average spent roughly 13 percent more on ground and air cargo transportation last year than they needed to, largely because of inconsistent discounting, accessorial fees and service failures, according to a freight and parcel audit firm.”

The sample size used in this study were shippers who shipped more than $500,000 annually, meaning that 13% is no small number.  Think of all the innovation that could happen if companies could accurately audit and pay their transportation bills and reinvest the money which would have been paid through overspending back into the operations of the business.

Shippers noted that this study raised some serious red flags and their concern is now “are we getting the whole truth” from transportation providers.

When companies don’t use an outsourced freight audit solution and rely on an in house group that doesn’t specialize in the minute analysis that is required to audit and paying bills correctly, errors and inefficiencies can take a toll on the bottom line as this study found.

We invite you contact us to learn about how your company can avoid 13% in overspending for freight transportation!

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  • Retain current clients

Now is the time to experience the Trendset Freight Pay and Audit Difference!  Learn how other 3PL’s are taking advantage of using best-of-breed technologies to differentiate themselves in the marketplace.

Capgemini’s Top 10 Reasons to Outsource in 2012

From: SupplyChain Digital

Capgemini, a French global IT services company and one of the world’s largest management consulting, outsourcing and professional services companies, has released it’s write up of the top 10 reasons businesses should consider outsourcingContributing writer Jim Davidson, Infrastructure Services Executive, Capgemini

1. Global Reach

Outsourcing today is seen as the need to find solutions that help connect people, processes and technologies that are located around the globe 24 hours a day, 365 days a year. CIO’s who outsource to providers who can leverage this critical function allows CIO’s to focus on key business drivers.

2. Operating Expenditures (OPEX) Rules

Outsourcing shifts capital expenditures into operational costs which can help improve financial measurements by eliminating the need to show return on equity from investment capital.

3. Innovation and Interoperability

CIO’s who can tap into resources that help shape the ability to create and drive new products to market (such as SaaS) can be critical in developing new business strategies.

4. Service Transparency

Use metrics as a key indicator of the success of IT.

5. Savings in Labor Cost

This is one of the most basis reasons why companies evaluate the cost savings benefits of outsourcing.

6. Centralized Management of Resources and Functions

Outsourcers have developed ways of consolidating many internal functions (such as service desk support, different operating technology standards), CIO’s looking leverage this consolidation will realize greater control of resources and functions to avoid unnecessary duplication and cost reduction.

7. Improve Regulatory Controls

For most businesses achieving, measuring and maintaining compliance is a complex and capital-intensive endeavor.  When companies look to outsource the design, execution and auditing of certain functions the relationship can lend both to benefits and burdens.  In order to minimize these effects it is important to have a well-executed contract with a proven service provider.

8. Accelerating Process Maturity

The mere act of outsourcing can often be a driving factor in business process maturity and help build a more customer and process centric organization.  Companies who leverage frameworks (such as the Information Technology Infrastructure Library {ITIL}, Sig Sigma, and the Control Objectives for IT {COBIT}), can drive a set of best practices application across the whole organization.

9. Increased Resources

Outsourcing provides companies the ability to reach into the global pool of talent, in order to acquire new skill sets for project work, mergers and acquisitions, and/or expansion into new regions.

10. Improving Company Strategic Focus

Drive innovation by letting an outsourcer focus on managing operational functions while your company focuses more strategically on it’s own core business.

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