that are not in the best interests of their companies. Accounting Departments, through no fault of their own, are unable to analyze transportation costs to identify errors, excessive charges, regulatory violations and savings opportunities.
FACTS TO CONSIDER
• Interstate Commerce Commission Termination Act (I.C.C.T.A.) of 1996 cautions shippers that pricing
agreements be in writing and signed by authorized officials of their firm.
• Incorrect classification of products, either inbound raw materials or outbound finished goods, result in higher
• Base rate scales vary by carriers whereby a "60% discount off our rates" will result in different net charges.
• Carriers Rules Tariff dictates accessorial charges unless shipper has negotiated these costs.
• When was the last time your company analyzed methods and cost in a deregulated carrier market.
Analysis and Consulting Division
Specializing in the areas of freight analysis cost studies, negotiations, implementation, and traffic management.
• Your true freight expense?
• Base rates before discounts?
• How freight discounts work?
• Vendor lane activity?
• Customer lane activity?
• Negotiation issues to obtain best pricing?
ABC LOGISTICS, INC. ANALYSTS WILL
• Review most recent paid freight bills for LTL and Truckload shipment data
• Identify vendor / customer cost lanes
• Review bill of lading for correct classification codes and descriptions
• Determine base rates used by your carriers
• Prepare a rate comparison study of current carrier base
• Determine accessorial costs
• Review small package, import-export, and air freight pricing
If applicable, analyze company fleet costs
• Provide written report of all findings, documented by Account’s actual freight bills
ADVANTAGES TO COMPANY
• Gain control of traffic dollars
• Lower transportation costs
• Improve profits
• Improve service to customers
• Assurance of legally prepared and filed documents as related to transportation
• Improve carrier relations
• Reduce warehouse and dock congestion
• Reduce traffic personnel hours
• Improve inbound inventory flow
• Forecast long term transportation goals
• Develop effective traffic procedures and policies
Deregulation of the transportation industry generated opportunities for reducing costs and improving service overlooked by many companies. Moving goods to and from customers and suppliers is perceived as tangential to primary line(s) of business, not as a significant controllable element of operating costs and service delivery.
Senior managers are usually experts in their specific industries or in financial operations, and work within comfort areas of their own expertise. Internal operating units are often self-serving and uninformed about the bottom-line impact of transportation issues; consequently, they influence carrier decisions
ARE YOU AWARE OF