How do you know that you are not invoiced twice for the same shipment? Did the freight company really base the invoice on your contract? What is the freight spend? Are the additional fees correctly invoiced? The right currency? Logistics that entails complex flows and many players constitute a challenge for many shippers. How to get in control?
Unfortunately, it is not unusual for invoices to be issued in the wrong currency, such as EUR instead of SEK, and an invoice is sometimes sent twice. Most importantly, you may suddenly discover players that have not invoiced in accordance with your agreed contract rather based the invoice on a standard contract instead, making you pay too much. It is difficult to follow up if you don’t have the right tools. Our experience indicates that companies save 2–5% on average by just implementing invoice audit based on advanced systems and a well-functioning standard process.
Take control of your logistics invoices
It is not that hard to get your total freight costs. But how can you be sure that you are always invoiced according to the right contract and in the right currency, that you do not pay additional fees incorrectly or that shipments are invoiced twice?
Primelog Freight Spend Management is able to make a complete audit and freight reconciliation of all your invoices against your transport contracts. Primelog TMS will make an automatic comparison between the planned cost and the actual cost on the invoice, and notify any deviations. Primelog Freight Spend Management usually provides immediate and direct cost savings from 2–5% of the total freight turnover. The system also has many other benefits, such as the possibility to link costs and exceptions directly to a specific transport company, shipment or package.
Get an overview of your transport companies
Today, it is not uncommon for companies to keep their manufacturing, warehousing and planning in different locations. Many shippers work with several freight forwarders, particularly if the geographic footprint is international. This makes it difficult to gain visibility and control of the various transport companies and existing contracts. With Primelog Cost Control, you simply collect all your contracts in a single system. The system automatically matches an invoice to the right supplier and the right contract, and sends an automatic report of all deviations that may arise.
Calculate the freight price in advance
The ability to calculate the exact freight cost in advance has many advantages. Not only will you know the cost before receiving the invoice from the freight forwarder, but you will also be able to compare freight contracts from different transport companies and handle the procurement of transports in a more efficient manner. You will also be able to get information of your accruals instantly of transports executed but not yet invoiced.
Reduce your freight costs right from the start
Starting to use Primelog Cost Control is smooth and simple. Many companies quickly save from 2–5% of the total freight cost just because the system is able to match transport invoices with contracts.
Use your control
If your costs are specified in Primelog Cost Control, then you own your own information and are not dependent on your supplier for information regarding your flows. You can produce statistics and reports on your total costs or, alternatively, have these allocated (e.g. per country, transport company, order, product group, customer, etc.) based on your needs. In addition to the effective production of reports, Primelog Cost Control also provides excellent statistics for procurements and negotiations, as well as support for cost allocation at the end of a financial period.
Clear cost savings
You will achieve cost savings with Primelog Freight Spend Management since it:
- Checks 100% of your supplier invoices
- Ensures that the right contracts are used – your own
- Follows up on suppliers based on your data instead of theirs
- Provides statistics for freight and transport procurements
Return on your investment within one year – following implementation, you will save money annually by:
- Identifying incorrect invoices – generally 2–5% of your freight turnover
- Using a standardized and automated process
- Getting detailed follow-up on costs per time, freight forwarder, location, etc.
- Checking that you have been charged according to the right contract and at the right cost