Emballages Carrousel has more than 20,000 customers, ranging from small corner shops to multinational corporations. Its customers come from all sectors: manufacturing, hospitality, food processing, market gardeners, food retailing, etc.

Its customers expect Carrousel to have the best-performing products and to keep them up to date on the latest industry developments and regulations, such as those banning single-use plastics. They also expect personalized, courteous service, easy ordering, and fast, accurate delivery.

The Solution

The Generix SOLOCHAIN solution proved to be the ideal answer to its specific needs. The functionalities offered by the solution were a perfect match for the requirements of Carrousel Packaging. The system’s flexibility and configurability were essential, as were the aesthetics of the mobile units. Another crucial element was the location of the Generix team in Quebec, ensuring French language customer service.

The implementation project was divided into segments to adapt to Carrousel’s operational peaks, and the Generix team was extremely flexible.

SOLOCHAIN, with its remarkable flexibility, adapted to Carrousel’s marketing environment, which was challenging due to the diversity of its products, the management of expiration dates, batches, the FIFO principle, and many other aspects.

The strategic reason behind the simultaneous deployment in five distribution centers was to engage all sites from the outset of the project to integrate them into the solution and decision-making, thus ensuring their full mobilization. This was also to avoid different sites running on different systems simultaneously, minimizing potential risks to company operations.

The Carrousel and Generix teams met weekly to discuss project progress. During the test phase, daily meetings were organized to closely monitor Carrousel’s requests. Generix was actively present throughout: during the workshops, the training period, and go-live date.

The Results

SOLOCHAIN has a positive impact on the quality of services offered by Carrousel. Results achieved with SOLOCHAIN:

• Greater efficiency in order processing and truck loading.
• More reliable inventory management.
• Easier integration of new employees thanks to the ease of use of mobile units.
• Improved productivity through interleaving functionality.

To learn more:
855-938-4562
www.generixgroup.com

“To use an analogy, it’s like the janitorial service at your office. You know when it’s not done, but otherwise it just seems to happen,” says Craig Cameron, vice president of sales and marketing with A3 Freight Payment.

Now, however, the FBAP sector is moving to the foreground. “Companies now seek providers who can support all aspects of facility maintenance, to continue with the janitorial analogy,” Cameron says. Shippers are looking for providers that can go beyond simply checking for freight bill errors—although that remains important—to offer insights that can help them better manage transportation spending.

To that end, FBAP companies today focus on providing actionable information, says Allan J. Miner, chief executive officer with CT Logistics. Shippers often look to their provider for sophisticated tools they can use to complete calculations and create reports and heat maps that can guide decisions and actions.

Listen to a podcast discussion of this content, voiced by IL AI Audio.

The increase in package and parcel shipments—many a result of online and just-in-time deliveries from businesses to consumers and other businesses—has helped expand the North American FBAP market.

“These macro-economic conditions create voluminous shipment transactions and information, and it all requires auditing,” Miner says.

In addition, the past five years threw a wrench into many production schedules, impacting shipping timelines, says Jay Hazen, chief operating officer with CTSI-Global. When managing a process that depends on so many other processes, information, such as event tracking and monitoring of shipment timelines, becomes even more critical.

The value of FBAP services is gaining wider recognition across the globe. Until the past year or so, most new interest came from Europe or Asia, says Keith Snavely, senior vice president, global sales with nVision Global. Now, it’s coming from Latin America. “Latin America is coming into its own,” he says.

The increasing importance of accurate and relevant information also highlights the value that providers dedicated to the FBAP space can provide. For instance, some firms that had asked their third-party logistics (3PL) providers to take on FBAP responsibility are reconsidering, says Ross Harris, chief executive officer with A3.

Some 3PLs aren’t equipped to take on freight bill and audit work, particularly when it involves transportation activities that don’t fit easily into their back-office operations, such as steamship or cross-docking. “That’s what we’re good at—the funky stuff,” Harris says.

As shippers, like many other companies, seek to do more with less, they’re continuing to look for the improved efficiency that can come from automation solutions, streamlined connections, and digitized self-service capabilities, says Scott Burglechner, senior vice president of freight and payment product management with U.S. Bank.

These capabilities allow shippers to retire legacy EDI technology and automate traditionally paper-based or manual workflows.

Making the Connection

Some shippers have begun linking with their carriers through API connections. These connections can streamline budgeting and load-planning, as shippers don’t need to maintain contracted carrier rates in their own systems, says Nick Fisher, director of sales and partnerships with ARTC, formerly AR Traffic Consultants. Instead, with the click of a button, shippers can receive the rate information they’ve presumably negotiated, and then estimate the cost of their shipments.

Listen to the IL AI AUDIO podcast on freight bill audit and payment

However, identifying freight bill mistakes requires going outside these systems. “Otherwise, it’s like going to a restaurant and taking the waiter’s word about your bill,” Fisher says. “You won’t capture any errors that are in the carrier’s system.”

In another shift, carriers are becoming more stringent in enforcing payment terms. “They’re more quickly warning customers or cutting off services,” Fisher adds. In one sign of this, the carrier aging (accounts receivable) reports ARTC used to receive monthly now arrive every week or two.

Dramatic jumps in cargo theft by well-organized criminal rings are proliferating across the globe, while cyber threats and data theft continue to impact supply chains worldwide, presenting vexing, ongoing challenges.

“With potentially millions and millions of dollars or goods at stake, the entire industry needs to be vigilant,” Burglechner says.

Tightening regulations, especially around privacy, are likely to impact the future freight bill audit and payment industry, says Deanna Kaufman, vice president of product management with Körber Supply Chain Software.

For example, shipments to consumers’ homes contain personally identifiable information. By marrying this information to shipment data, it may be possible to determine which households are receiving prescriptions. “There’s a potential for regulatory agencies in the coming years to influence how freight bill data is used, stored, and kept safe,” Kaufman says.

Currently, many carriers and shippers work together through individually negotiated contracts. As technology advances, carriers likely will be able to leverage technology to determine the fullness of their supply chains at any moment, Kaufman says. They’ll be able to use this information to employ surge pricing.

Along with potentially higher rates, billing may become more opaque. It’s currently not clear if a shipper or auditor will have enough information to determine how full a network actually was. “You may have to take the carrier’s word that their network is this full,” Kaufman says.

While the industry faces challenges, the FBAP market continues to evolve and incorporate technology advancements. Providers are integrating big data, artificial intelligence, and machine learning to more effectively detect anomalies and provide shippers with critical information they can use to optimize transportation costs and improve operational efficiency, Burglechner says.

The FBAP providers highlighted here can help shippers meet evolving challenges.

A3 Freight Payment: Customized Spend Management Solutions

The shift from reactive to proactive analytics is probably the most significant shift in the industry today, says Craig Cameron, vice president of sales and marketing for A3 Freight Payment. And A3, which has earned a place on Inc.’s list of the 5,000 fastest-growing private companies in the United States for two years, is a leader in this change.

“A3 expands the traditional value proposition by applying AI and machine learning technology to the data captured from client systems.”

Craig Cameron
Vice President of Sales and Marketing
A3 Freight Payment

A3’s analytic solutions go beyond reporting transportation spend to enabling its clients to better manage their freight expense.

“We have already captured the data,” Cameron says. “So, we can distill the information and show a client how their choices are impacting the company and how to reduce their costs over time.

“A3 expands the traditional value proposition by applying AI and machine learning technology to the data captured from client systems, in addition to the freight audit process, to provide actionable intelligence that reduces costs by detecting anomalies and waste, identifies trends, and forecasts future expenses,” Cameron says.

By integrating clients’ data into the process, A3 can offer even more granular insight to cost drivers at the business unit, client, sales territory, PO, vendor, order, and SKU level. A3 also can utilize this information to assist shippers in carrier selection, bid negotiations, scenario modeling, and network optimization.

Many shippers turn to A3 for tailored transportation spend management solutions that incorporate advanced technology, industry best practices, and experienced customer service. In working with clients, A3 customizes its solutions to each client’s needs and goals, and seeks to form a collaborative partnership.

The core of A3’s solution is freight audit and payment. However, A3’s technology and expertise support its spend management solution and enhanced ROI.

“We integrate with our clients’ information systems and their transportation partners to aggregate a comprehensive data set that we then analyze to identify cost savings opportunities,” Cameron says.

Once it identifies these opportunities, A3 can either hand off the knowledge, or can actively help the client pursue the opportunities and manage the ongoing process.

A3’s freight bill audit and payment solution is designed to help capture the cleanest and most accurate data to support spend management. A front-end exception management approach ensures invoice data is captured one time and reflects the correct costs. That’s unlike short payment practices, which trigger balance and past due invoices that skew reporting.

A3 supports the global audit of all transportation modes at the charge level, and the disbursement of payments in any currency. Dedicated account resources ensure clients and their logistics providers have access to knowledgeable contacts who can facilitate exception resolution and identify and correct root causes for billing errors, GL coding issues, and business rule failures.

In its partnership with a large manufacturer, A3 systematically validated that shipments complied with the company’s routing guide, and when not compliant, calculated the impact of these operational errors. By identifying non-compliant shipments, A3 helped the company achieve seven-figure savings, says Brian Geibel, vice president of IT operations.

Looking ahead, the team at A3 is particularly excited about its further application of predictive and prescriptive artificial intelligence. “We continue to expand beyond classical historians to become partners in our clients’ management of their transportation spend,” says CEO Ross Harris.

ARTC Logistics: Real Solutions for Lower Costs

ARTC Logistics focuses on three main service areas as it helps shippers streamline processes, lower freight costs, and operate more efficiently, says Nick Fisher, director of sales and partnerships.

One is freight audit. For nearly 60 years, ARTC has been auditing freight bills as an independent third party. Each year, it audits invoices totaling about $450 million and has about 20 million packages under management.

“Because ARTC is independent and not a broker, our finances don’t depend on the carrier a customer uses.”

Nick Fisher
Director of Sales and Partnerships
ARTC Logistics

The detailed reporting ARTC offers captures every element of freight cost, such as accessorials, fuel, net charges, and any discounts, Fisher says. This information can be allocated across shipments down to the SKU level, enabling shippers to identify transportation costs per product or item number.

Through its dashboard reporting portal, clients can create heat maps to better understand and manage transportation costs. On average, clients recover between 2% and 4% of freight spending through the audit.

In addition, ARTC helps its customers more effectively negotiate freight rates and determine which carrier is the best fit. “Because ARTC is independent and not a broker, our finances don’t depend on the carrier a customer uses,” Fisher says. ARTC benchmarks its client’s carrier rates against those of similar shippers, to determine if they’re in line with the market.

ARTC also offers a comprehensive transportation management software suite, which encompasses rating, routing, and analytics. CalcRate, ARTC’s flagship software, stores carrier rates to streamline shipping processes and lower freight costs. It also provides rating, freight audit/payment, and tracking functions. These tools allow the customer to audit and process its own freight bills, among other information.

A leading national plumbing supply manufacturer, with domestic inbound freight expense exceeding $1 million annually, recently implemented ARTC’s Vendor Routing Program. As a result, it has cut more than 30% from its transportation costs. This tool requires the company’s vendors or suppliers to process all shipments via the ARTC portal, which generates the routing selection, load tender, and other paperwork.

The buyers and warehouses are notified of pending receipts and can track the progress of the loads. Finally, the costs are accrued for future freight bill reconciliation.

In addition to its state-of-the-art technology, ARTC uses its expertise to conduct “what-if” studies that help shippers better manage their freight expense.

For example, through an inventory supply point analysis, ARTC can simultaneously assess multiple warehouse locations to determine the most cost-effective sourcing locations. Batch rating analytics identify the freight spend impact of changes in a carrier’s contracted rates. The modular structure of ARTC’s products allows shippers to choose only the solutions/services that best fit their needs.

Through its focus on technology investments over the past several years, ARTC has boosted its own ability to be productive, as well as that of its customers, Fisher says. It will continue to invest and innovate, ensuring it remains strong for the next six decades.

CT Logistics: More than a Century of Leading Services

Since 1923, CT Logistics’ core business has been providing freight bill audit and payment services. As the FBAP business has changed dramatically over the past century, CT Logistics has advanced, as well.

“CT Logistics has a bench of experts able to undertake sophisticated analyses.”

Allan J. Miner
Chief Executive Officer
CT Logistics

Because the thrust of the FBAP business today is real-time information shippers can use to boost performance, CT Logistics’ sophisticated reporting tools allow clients to easily create and view graphics, pivot tables, and other reports when they need them, says CEO Allan J. Miner.

FreitRater, CT Logistics’ expert freight audit and payment system, employs sophisticated algorithms and models that leverage the company’s industry knowledge.

With this technology, CT Logistics can analyze and improve clients’ transportation costs, contracts, and other information, taking into account the mode, origin, destination, services performed, and other attributes of each shipment. “It’s our special sauce,” Miner says.

QLIK Analytics then provides visual insight into the data generated through the FreitRater engine. For example, QLIK might create a heat map showing transactions in which parcel costs have jumped more than 10% above the annual average. A shipper can then drill into the exceptions to identify the reasons for the spike, such as the shipment of a higher-value product that requires additional insurance.

“We can get answers from behind the curtain,” says Miner.

The QLIK database spans all modes and all regions of the world. Because freight payment data is uploaded weekly, clients can continually access updated information.

They also can set parameters so they’re quickly notified of anomalies. Further review can show if the shift is a one-time blip or a trend.

While up-to-date technology is a critical element of FBAP services today, the insight that CT Logistics’ experienced team of logistics professionals can provide is just as important.

Among other services, they can offer valuable supply chain management consulting, project management, spend analyses, and benchmarking studies. “CT Logistics has a bench of experts able to undertake sophisticated analyses,” Miner says.

CT Logistics can also leverage its large database of freight spend data to aid clients. For example, if the database reveals that parcel rates have been increasing over the past nine months for its clients, CT Logistics might advise shippers to consider renegotiating their contracts before rates rise even more.

CT Logistics brought its technology and expertise to its work with a large technology company whose decentralized, fragmented business processes limited visibility to global transportation spend. CT Logistics partnered with the client to deliver a global transportation invoice validation and visibility solution that spans 41 countries, dozens of currencies, and hundreds of millions of dollars of transportation spend.

By centralizing control, standardizing processes, and creating a global database of shipment activity by country and region, the solution improved logistics and supply chain operations and is helping the company to rein in global supply chain costs.

From its base in the manufacturing heart of the United States, CT Logistics will continue to leverage its technical solutions and logistics expertise to further serve its clients. As it does, it continues to grow in North America and around the globe.

CTSI-Global: Gain Insight, Embrace Efficiencies, Reduce Spending

“CTSI-Global is a true global logistics ecosystem,” says COO Jay Hazen. The company stands apart in several ways.

One differentiator is its global freight audit and payment capabilities, such as languages and currencies. The other is its Honeybee TMS (transportation management system) for shipping execution, optimization, and analytics.

“We work across all sectors, modes, currencies, restrictions, rate negotiations, and just-in-time inventory planning.”

Jay Hazen
Chief Operating Officer
CTSI-Global

Leveraging technology that has been refined over decades, CTSI-Global’s world-class, multimodal audit solution fully automates audits for all duplicate, rate, discount, ancillary, and performance metrics, with refund processing for all exceptions.

Clients have full visibility and transparency into carriers’ rates, audit and coding logic, and invoices. They also can utilize modeling and benchmarking solutions that are second to none.

As important, the audit staff at CTSI-Global has more than 400 years of combined experience in all modes of transport with companies from across the world. Employees are on the ground in multiple countries, offering real-time human support in local languages throughout the global workweek.

“They understand the languages, customs, regulations, and complexities of global business,” Hazen says.

Each day, CTSI-Global processes more than five million transactions; these total more than $15 billion in transactions annually. “We work across all sectors, modes, currencies, restrictions, rate negotiations, and just-in-time inventory planning,” Hazen says.

CTSI-Global works on behalf of many heavy industrial concerns, including multiple auto manufacturers.

For example, it helped one carmaker bring 25 national divisions—all operating with different currencies, languages, and atomized national control—into a singular corporate procurement straw, Hazen says. As a result, the company has gained visibility into vendor approval and verification, contract benchmarks, real-time currency risk, as well as any anticipated shipping delays across multiple nations.

Honeybee TMS by CTSI-Global enables shippers to streamline and optimize inbound and outbound transportation. It accomplishes this by capturing and connecting data from disparate systems and transportation service providers to offer a simple, cost-effective transportation management solution.

The range of capabilities offered by Honeybee TMS enables shippers to boost efficiency, enhance control, and enjoy significant ongoing savings. Time-consuming manual tasks are automated, boosting productivity and cutting costs.

For example, Honeybee TMS’s order management capabilities enable shippers to receive, revise, schedule, and confirm orders with pick ticket generation and a range of application connectors.

The load optimization solutions can consolidate shipments by size or weight, while offering flexibility for multi-stop routing, pooling, and intelligent process automation.

Honeybee TMS’s carrier selection capabilities enable shippers to identify optimal carriers based on performance, lane routing, price, or custom criteria.

The shipment execution technology matches preferred carriers and delivery requirements to automate load tendering, confirmation, and shipping.

The claims management system can file overcharge, shortage, and damage claims, while also automating carrier notification and claims tracking through to resolution.

The event management feature offers visibility before, during, and after shipment, as well as automated exception alerts.

For more than 60 years, CTSI-Global’s belief in balancing experience with inquisitiveness has enabled it to stay ahead of the technology curve and on top of industry developments. Whether through its superior SaaS solutions or its network of more than 20,000 carriers, CTSI-Global takes pride in helping customers expand capacity, boost efficiency, and cut expenses, no matter the challenges.

Fortigo: Guaranteed Freight Audit Accuracy

Fortigo’s solutions automate, optimize, and audit logistics decisions to help shippers reduce costs, improve operations, boost customer satisfaction, and increase profitability.

Because Fortigo’s freight audit and payment service is 100% cloud-based and uses a SaaS delivery model, it can complete system deployment within weeks. In addition, shippers can update rates as often as they need to.

“In a competitive industry with hundreds of FBAP providers, Fortigo is the only multimodal TMS provider that is also a Certified FBAP provider by FedEx.”

George Kontoravdis
President
Fortigo

“Our customer-oriented solution and intelligent algorithms have made it easier than ever for shippers to spot savings opportunities while also gaining enhanced visibility into their supply chains,” says President George Kontoravdis.

The advanced analytics Fortigo provides can offer valuable insights into shipping patterns, empowering supply chain stakeholders to make effective, data-driven logistics decisions. Live dashboards and hundreds of customizable reports drive business decisions and monitor spending trends, carrier performance, and savings to improve operations.

Historically, companies used different FBAP providers for different transport modes. Fortigo’s auditing solutions can handle all modes, providing shippers with a global view of their spending and carrier performance, helping to drive more intelligent decision-making.

Fortigo’s solutions are geography agnostic and can manage freight bills across all geographies and any mode of transportation. They’re also able to pay any carrier, with any currency, in any location.

Along with its freight audit and payment solution, Fortigo offers a multimodal TMS that can handle any type of shipment. This allows for a closed-loop system that empowers Fortigo and its clients to identify compliance anomalies with vendors, saving money and time.

Clients moving from manual processes to Fortigo’s freight audit solution can see first-year savings of 8% to 12%—or more. Established customers typically see savings of 1% to 4% or more year over year; the amount depends on the volume of shipments and the complexity of their transportation networks.

Customers who take advantage of the closed-loop audit solution by leveraging both Fortigo’s TMS and its freight audit services can realize even greater annual savings.

For the past three years, Fortigo has been named a FedEx Certified Freight Bill Audit and Pay provider. “In a competitive industry with hundreds of FBAP providers, Fortigo is the only multimodal TMS provider that is also a Certified FBAP provider by FedEx,” Kontoravdis says. The certification recognizes Fortigo’s ability to support the EDI round-trip process, increasing accuracy and efficiency within the freight audit function, as well as its focus on cybersecurity and ability to protect confidential data.

From its early days, the Fortigo team has opted to grow organically, so it could focus on customers’ needs. This customer-oriented model allows Fortigo to continually deliver unique supply chain innovation to customers. Over the next few years, Fortigo will continue to focus on innovation to remain the best FedEx certified FBAP provider, Kontoravdis adds.

Intelligent Audit: AI Empowers Shippers to Ship Smarter

For nearly three decades, Intelligent Audit, a women-owned company, has been a leader in providing comprehensive freight audit and payment solutions across all transportation modes worldwide.

By tailoring these solutions to specific departments or functions, shippers gain a deep and accurate understanding of their shipping operations.

“Our system excels at pinpointing variances and providing context, saying, ‘This doesn’t align. Let’s investigate.”

Hannah Testani
CEO
Intelligent Audit

What sets Intelligent Audit apart is its use of advanced deep learning models, a sophisticated branch of machine learning that works by identifying patterns and anomalies within large datasets. While this technology is often associated with fields such as healthcare imaging, Intelligent Audit has successfully adapted it to the complex realm of transportation data.

“Our customers’ transportation data is rich with patterns,” says CEO Hannah Testani. The company’s proprietary machine learning algorithms—an ensemble of auto-encoders, boosted decision trees, and LSTM (long short-term memory) frameworks—process these patterns, such as expected shipping volumes or weights, and detect deviations. When anomalies arise, the system determines whether to adjust its expectations or flag the issue for further investigation.

Intelligent Audit’s anomaly detection capabilities extend far beyond traditional freight auditing. Not only do they identify anomalies, but they also provide contextualized information that explains why these anomalies occurred and what actions to take next.

This approach ensures that potential issues—whether caused by technical glitches, human errors, or fraudulent activities—are promptly identified and addressed, preventing significant financial losses.

For example, if a shipper incurs higher than usual costs for a shipment, Intelligent Audit’s system detects the discrepancy in real time, allowing for quick resolution and avoiding unnecessary expenses.

“The system excels at pinpointing these variances and providing context, saying, ‘This doesn’t align. Let’s investigate,’” Testani notes.

Intelligent Audit’s anomaly detection capabilities have proven particularly effective, such as in a case involving a global eyewear manufacturer. The system identified an unusual spike in returns, which turned out to be the initial stages of an organized fraud scheme. The solution uncovered more than $1 million in fraudulent activity, prompting an FBI investigation.

In addition to deep learning, Intelligent Audit utilizes natural language processing (NLP), a technology that combines computer science and artificial intelligence to enable computers to interpret and work with human language.

NLP outperforms traditional optical character recognition (OCR) for speed and accuracy, making it capable of filling in missing information on invoices or responding to customer emails within minutes through a human-like chatbot interface.

In partnering with clients, Intelligent Audit strives to bring the most advanced technology, recognizing that many customers may not yet be ready to invest in these systems themselves.

“These solutions enable us to be more effective, respond more quickly, and scale in a more efficient way, so we can add immediate value,” Testani says.

Beyond technology, Intelligent Audit’s consulting practice offers strategic insights that shippers may not be able to access independently. The company’s approach to success goes beyond merely maximizing financial savings; it involves identifying the root causes of issues and collaborating with clients to resolve them. “We believe the true value lies in having clear, accurate data that you can trust to manage your supply chain,” Testani says.

As technology continues to evolve, Intelligent Audit remains committed to innovating and addressing challenges that customers may not even be aware of yet.

Körber Supply Chain Software: Transforming Data Into Actionable Intelligence

Traditional freight bill audit and payment services have become “table stakes” in this business, says Deanna Kaufman, vice president of product management. Körber Supply Chain Software offers technology and services that add value to clients’ end-to-end supply chains.

“We can offer, among other capabilities, decisioning support and supply chain or inventory optimization solutions to help shippers reduce their total cost of ownership,” she says.

“My vision for the future is to make everyone in the process more efficient, while also helping clients shift from a reactive to a proactive approach.”

Deanna Kaufman
Vice President of Product Management
Körber Supply Chain Software

Körber’s Transportation Spend Optimization (TSO) solution enables shippers to holistically address multiple challenges, such as sourcing favorable carrier agreements, complying with sustainability regulations, and reducing costs. With Körber’s TSO solution, shippers are better positioned to streamline transportation operations and simplify freight cost management.

And with its August 2024 acquisition of MercuryGate, a TMS provider, Körber’s solutions encompass order, warehouse, and transportation management.

“Many shippers are challenged to boost performance if they lack a single source of truth that links their transportation and finance functions,” Kaufman says.

So, along with standard FBAP capabilities, Körber’s TSO solution can integrate information from multiple disparate sources, such as carrier sourcing and freight bill processing data. As a result, it can provide a sophisticated level of intelligence that enables shippers to boost operational efficiency.

And rather than simply offer data, Körber Supply Chain Software works with its clients to interpret and leverage insight and intelligence that enhances decision-making.

For instance, if the Körber team notices a jump in shipping charges, it will leverage its resources and expertise to engage in root cause analysis. The result? “Shippers gain an understanding of profitability down to the stock-keeping unit (SKU) level, so they can better manage their businesses,” Kaufman says.

A well-known home goods company was receiving numerous charges for oversized shipments. Körber Supply Chain Software’s research revealed that most were driven by a small number of furniture pieces that were being over-packed. By changing the box size, dunnage, and other shipment attributes, Körber helped the company slash its transportation costs.

“It’s the law of large numbers. When you ship a lot of packages and can save a buck or two here and there, it starts to amount to real money,” Kaufman says.

Körber Supply Chain Software solutions have helped it earn a place in the 2024 FedEx Certified FBAP program. This program recognizes FBAP providers that consistently meet FedEx’s rigorous standards for receiving invoices electronically, processing and remitting payment details, and for managing disputes on behalf of customers.

At the same time, technology is just one factor in Körber Supply Chain Software’s success. “We call our solution, ‘tech-enabled managed services,’” Kaufman says, noting that Körber Supply Chain Software offers decision support, analysis expertise, financial reporting, and contract negotiation assistance, among other services.

“My vision for the future is to make everyone in the process more efficient, while also helping clients shift from a reactive to a proactive approach,” Kaufman says. “We do this by ensuring they have as much information as possible at their fingertips.”

nVision Global: End-to-End Freight Management Solutions and Services

nVision Global software uncovers value.

With seven facilities in the Americas, Europe, and Asia, customer service associates stationed in more than one dozen countries, employees who speak more than 25 languages, and experience processing invoices from more than 190 countries, nVision Global truly lives up to its name.

nVision also can make payments in nearly all commonly traded currencies, from the Colombian peso to the Euro to the Malaysian ringgit, using in-country accounts. “This eliminates currency fluctuation as well as hefty international banking fees,” says Keith Snavely, senior vice president, global sales.

In contrast, some FBAP companies continue to rely on wire transfers, which are expensive and carry large fees, he notes.

In addition, nVision Global works with nearly 20,000 transportation providers from across the world and can receive invoices in numerous formats and languages. Currently about 95% of the transportation invoices it receives are automatically coded, with the system assigning general ledger codes based on logic provided by nVision’s customers.

All invoices that are processed through nVision’s freight audit and pay solution pass through three robust rating engines. These store shippers’ negotiated pricing in nVision’s database, rate each invoice against the negotiated pricing, and then perform a comprehensive audit of each invoice.

nSight Global Freight Management Analytics Tool offers hundreds of key performance indicators (KPIs), as well as the ability to create thousands more, Snavely says.

Examples include the percentage of bills processed electronically and manually, as well as the number of exceptions. “Our analytics tool helps customers streamline and optimize their global supply chain,” he says.

nVision worked with one leading supplier to the automotive industry that manufactures on every continent. The company’s range of locations and decentralized operations obscured visibility to supply chain data, as well as to opportunities to boost efficiency and cut costs.

Using the nVision Logistics Management Portal, the company developed a single international database from which it could access accurate, detailed data on its freight spending. This enabled it to identify money-saving steps, such as consolidating shipments to the same region into “milk runs.”

This enabled the company to cut transportation expenditures by 25%.

The company used the nSight Global Freight Management Analytics Tool to assess various performance metrics and then could negotiate better contracts.

Along with its freight bill audit and payment services, nVision Global offers a range of supply chain services, software, and technology. This includes a transportation management platform, Impact TMS, from which clients can manage all global shipments, with real-time visibility and tracking. nVision’s Rate Procurement and Negotiations Software and Services enable shippers to see available lanes, submit bids, and analyze them in a single view.

By providing a deep range of freight bill audit and payment tools, robust analytical solutions, and global operations, nVision enables customers to focus on their business operations while gaining the information they need to effectively manage their global supply chains.

U.S. Bank: The Service, Reliability, and Security of a Bank

The multi-year investments in technology and data analytics by U.S. Bank’s Freight Payment division enable it to provide valuable insight, as well as automation technology, that helps shippers streamline operations through robust self-service capabilities and automated business rules that reduce the need for manual intervention, says Scott Burglechner, senior vice president of freight and payment product management.

“We employ segregated builds to prevent co-mingling of customer data, and we safeguard sensitive supply chain data to help protect partners and suppliers from cybercrime.”

Scott Burglechner
Senior Vice President of Freight
and Payment Product Management
U.S. Bank

Depending on a customer’s current FBAP operation, shippers can save up to 10% when they begin working with U.S. Bank. Many realize cost savings and capacity creation through process improvements, as well as by adopting best practices that accelerate automation and expense control. “Our aim is to help customers drive operational changes in their business rules and approval processes that generate positive outcomes for a vast majority of invoices,” he says.

Given the current uncertain economic environment, U.S. Bank’s ability to help shippers enhance working capital has become increasingly important. By leveraging U.S. Bank’s cash management solutions, shippers can extend transportation freight payments without having to renegotiate contracts.

U.S. Bank’s Advanced Carrier services offer a quick, clean pre-payment audit that speeds payment and boosts accuracy. Shippers pay only what they should, and carriers receive the right amount the first time. Rather than spending resources resolving invoice and payment disputes, shippers can focus on collaborating with carriers for strategic supply chain improvements.

As a full-service, financing and payments provider that’s federally regulated, a significant focus of U.S. Bank is ensuring the security and reliability of its technology, so it can continue to deliver solutions that exceed customers’ needs. U.S. Bank’s world-class, Tier IV data center has a proven track record of protecting client information against credible threats, a result of its mission-critical servers and systems, which are hosted in a reliable, fault-tolerant and secure environment.

“We employ segregated builds to prevent co-mingling of customer data, and we safeguard sensitive supply chain data to help protect partners and suppliers from cybercrime,” Burglechner says.

Because it’s federally regulated, the audit and compliance requirements to which U.S. Bank is held are more rigorous than those of unregulated, non-bank digital or fintech companies.

A large provider of industrial products suspected that it was being scammed by criminals shipping their packages on the company’s parcel accounts. However, because the company ships millions of packages annually, it struggled to uncover the source of the fraud. Management turned to U.S. Bank, whose team found the scammers were creating multiple small packages, distributing their fraudulent activity so it was harder to detect. The bank’s comprehensive analysis uncovered more than $650,000 of fraudulent charges over just six months, Burglechner says.

Backed by the strength and stability of the nation’s fifth-largest bank, U.S. Bank’s freight audit and payment team continues to innovate. It’s currently working with several business partners on a pilot solution that will automate the validating and processing of detention and demurrage bills.

“U.S. Bank will continue to invest in solutions that make its customers’ lives easier, including in automation, faster payments and predictive and prescriptive analytics,” Burglechner says.

Looking Into FBAP Providers

Freight bill audit and payment (FBAP) providers can help companies save money, streamline operations, and make more intelligent decisions. To gain these benefits, shippers can address the following questions to identify strong, reliable FBAP partners.

How solid are the company’s financials? Ask to review externally audited financial statements, and check that the provider has fidelity bonding. It should also employ a bankruptcy remote structure that protects clients, should the firm run into financial trouble. Once a provider is hired, check these attributes annually.

Has ownership recently changed? This may not be a concern in other industries. However, the FBAP business tends to be stable with long-term relationships. A change in ownership may mean an owner is facing financial challenges and needs to bring in additional business partners.

Also check if the FBAP provider changed banks recently. This might be another red flag that business and banking operations are not stable.

Who is doing the work and holding the data? Some firms engage outside partners to provide certain services. While there’s nothing necessarily wrong with this, shippers should know who’s working on their account, where their data will reside, and who will have access to it. This is key to protecting client data and complying with regulations.

What does the provider mean when it says it’s “global”? Does the FBAP provider operate full-service processing centers around the world, or does it instead rely on a handful of employees in a few countries? Does it have employees in each region who speak the language and understand local requirements?

How are clients’ funds and data handled? Freight bills contain a wealth of valuable information. A trustworthy provider has a fiduciary responsibility to its clients. Among other steps, it won’t co-mingle funds and data with those of other companies.

The provider also should have established processes and technology to ensure data security.

Trans Audit: The Power of Partnership

How Trans Audit’s Post Audit Complements a Pre-Audit

More than 95% of Trans Audit’s clients utilize the services of a freight audit and payment (FAP) provider, so why do they partner with Trans Audit for a transportation post audit?

For starters, the timeframe to conduct a pre-audit is limited, while the post-payment audit allows for a longer review period. For example, claims related to billing errors for ocean freight can be submitted three years in arrears from the ship date. Additionally, payment data for all modes can be reviewed for up to five years. These extended filing statutes allow for an extensive safety net, regardless of pre-audit and payment source.

Another unique aspect of Trans Audit’s post audit services is the utilization of Subject Matter Modal Experts (SMMEs), who are highly skilled professionals with more than 20 years of experience on average. These human experts are supported by proprietary systems built specifically for post audit purposes, ensuring a thorough and accurate review.

Moreover, Trans Audit’s advanced data analytics and business intelligence tools, such as TransPortal+™ powered by Microsoft Power BI™, provide real-time dashboards and insights that help monitor, manage, and improve carrier billing, FAP performance, and payment accuracy.

“The combination of human expertise and cutting-edge technology sets our transportation post audit process apart, delivering both financial and operational benefits to Trans Audit clients, allowing them to rest easy,” states Dani Funk, VP of Development.

Trans Audit’s approach to their post audit is distinctive for several reasons. “Unlike many other providers who offer a broad range of services, Trans Audit focuses solely on transportation post audit services, allowing us to perfect our methods and deliver exceptional results,” says Peter Kerwin, vice president of audit operations.

Trans Audit’s team of SMMEs not only identifies payment-related errors but also audits for contractual compliance, ensuring that all aspects of the client’s agreements are adhered to. This holistic, client-centric approach contrasts with the siloed methods of other providers.

Furthermore, as Trans Audit’s post-payment audit process is entirely contingency-based, clients pay a fee only on refunds ascertained by Trans Audit. This model, combined with a commitment to handling 100% of the audit process in-house, ensures a straightforward, efficient partnership with minimal client resources.

The positive feedback from clients highlights the value Trans Audit places on building strong, long-term relationships over merely pursuing financial gains. “I appreciated the fact that we started through a bid and started from scratch. You were chosen partly because your nature during the process was professional, easy to talk to, and not pushy. It felt like a normal discussion and not a sales pitch. I believed what you said. You lived up to it,” said a senior transportation manager of a Fortune 500 global aerospace company.

“Despite common misconceptions, the post-payment audit is a valuable complement to pre-audit processes, not a redundant service. Concerns about time, resources, and cost are dispelled, as our post audit is simple, swift, and straightforward,” says Vikki L. Van Vliet, senior vice president of sales and marketing with Trans Audit.

Because of Trans Audit’s approach, they maintain excellent relationships with all types of FAP providers and work collaboratively to ensure the best outcomes for their clients. By integrating human expertise with advanced technology, Trans Audit offers a reliable and ubiquitous solution that enhances the financial security and operational efficiency of Trans Audit clients, providing them with peace of mind.

When Easy Ice partnered with Echo Global Logistics in 2012, Easy Ice was relatively small. As the company began to grow more and more rapidly, Echo leveraged its Managed Transportation offering to the benefit of Easy Ice, enabling a much more seamless operation and taking the burden of transportation off of the business.

Listen to Echo on the Inbound Logistics podcast

The Challenge

The challenge came from the specialized needs of Easy Ice shipments. In an effort to optimize shipping through capacity options, Echo applied its Managed Transportation technology to the business, allowing Easy Ice to scale logistics and transportation as the company grows. As a result, Echo was able to manage negotiations for shipping and warehousing and provide analytics to identify continuous improvement opportunities.

The Solution

Echo’s Managed Transportation solution allows Easy Ice to access a variety of services, including simple and easy to use integrations, dynamic, real-time data analysis, automation technology for order optimization, data capture, communication, and reporting, sales and purchase order planning, load-matching AI to organize and book quicker, multimodal services, and communication with real people for 24/7/365 support.

With Echo’s help, Easy Ice can manage a variety of different transportation needs all at the same time. Echo provides a dedicated account team which takes care of carrier negotiations, identifies warehouse solutions, helps navigate shipping, supplies insight and data to optimize processing, and leverages technology-enabled tools to create a faster and smoother transportation experience.

“What I truly love about our team at Echo is it feels more like my friends. [Echo] feels like an extension of us. They’re very reliable. We’re very aligned on where our focus is and they’re going to always have our needs in mind.”

– Amanda Kaminski
Operations Manager at Easy Ice

Freight security, customs compliance, and trailer capacity represent some of the major roadblocks cited in the U.S. Department of Transportation’s Framework for Improving Cross-Border Mobility and Trade. All of these challenges can be navigated easily with the right freight transportation provider.

Freight Visibility and Security

Door-to-door visibility of shipments in Mexico is crucial. A quality carrier should be able to provide shippers with the status of their shipment throughout the transportation process, including notifications about tracking, delays, and delivery estimates, apart from time when freight is under the control of governmental authorities.

For high-value shipments, it is also possible to attach tracking to the freight independent from the tractor or the trailer in order to maintain tracking of the cargo even if it becomes separated from the truck.

One of the most important steps in maintaining the security of freight is ensuring that the hauling carrier is CTPAT-certified. CTPAT certification is a strong hedge against supply chain risk in Mexico because it means drivers and service providers have been trained to identify security risks, follow best practices for security, and create action plans for addressing potential threats.

Securing Capacity

Securing reliable capacity within Mexico is a common concern of American shippers. One way that Landstar addresses this concern is to utilize one of our many independent agents who are cross-border experts. These agents have the knowledge, connections, and experience to arrange dependable capacity on both sides of the border.

Another option for Landstar customers is to utilize Mexico-based Landstar Metro. Landstar Metro provides intra-Mexico logistics services that include sourcing capacity for truckload, less-than-truckload, and expedited shipments. This creates a closed loop where freight transportation is managed by one entity that operates according to CTPAT standards.

Customs & Regulations Compliance

Controlling the many links of the cross-border supply chain requires a sophisticated coordination of resources and communication. Landstar’s in-house customs brokerage can manage the documentation preparation, so shipments are cleared without unnecessary delay when the freight arrives at the border.

In the dynamic border environment, connections, reputation, and experience provide invaluable advantages in overcoming daily complexities and challenges that arise. This is true with regards to paperwork and legal requirements as well as with the actual work of getting freight moved.

Landstar’s three decades of experience as a key participant within the U.S./Mexico cross-border supply chain led to a model in which the experience of Landstar’s independent agents, paired with a suite of cross-border services such as in-house customs brokerage, and leading safety and security standards have streamlined the process of moving cross-border freight.

Learn more about how Landstar’s agent model breaks boundaries and crosses borders at www.Landstar.com.

Landstar stands for safe, secure, and reliable transportation services delivered by a network of independent freight agents, leased owner-operators, and other third-party capacity providers. We empower these entrepreneurs to offer customized shipping solutions. www.Landstar.com

AI is being integrated behind the scenes in a wide range of applications designed to make them—and the people who use them—exponentially more efficient.

You’ll find it in various logistics applications such as route optimization, greenhouse gas emission information, and TMS integrations. Companies are quick to acknowledge the potential to enhance freight matching and operational efficiency, along with enhancing route optimization.

The most significant hurdle for AI adoption is trust. In Odyssey Logistics’ AI Meets Critical Intelligence research brief, just 25% of respondents use new applications or insights from AI in their organization.

Despite the hype, AI is still in the early stages. Reluctance to fully embrace AI is understandable at this point in its development. It’s not always relevant to certain activities, and there are cultural risks, such as labor issues. The logistics industry has been slow to adopt new technology solutions, and the uncertainty many companies experienced during the freight tech boom did not generate enthusiasm for the next generation of tech solutions.

However, companies are recognizing the potential for collaborative tools, workflow optimization, and operational improvements. Companies must evaluate the activities where AI is well equipped to handle repetitive, transactional tasks and those where human institutional knowledge is required.

The study revealed that 52% of the respondents favored a human-led approach to AI, in which AI tools and insights support decision-making. As technology advances, practical uses for AI are gaining traction to advance this effort.

Security Considerations for AI Integration

In the study, cyber security was a primary concern, with 46% prioritizing it over traditional concerns like fuel prices.

Listen to Odyssey on the Inbound Logistics podcast

It’s critical that logistics professionals realize cybercrime is a risk that requires effective preparation and strategy, including employee training. Operations and IT managers must understand and prepare for new attack vectors made possible by AI and create an acceptable use policy for public generative AI solutions.

“In my role, I get to see both the good and the bad of AI,” said Mike Irwin, Chief Information Security Officer and Senior Director of Technology Operations for Odyssey Logistics. “The good being collaborative tools, workflow optimization, and operational improvement. The bad being the way that threat actors are using AI to further compromise organizations.”

3 WAYS TO USE AI

Blending human insights with AI’s data-driven capabilities will foster more thoughtful decision-making for efficiency and safety.

• Shipping Practices. Tighten efficiency throughout the supply chain through optimized shipping routes and load consolidation.
• Sustainability. AI is already used to analyze greenhouse gas emissions to guide purchasing decisions and strategies and enhance compliance reporting.
• Resilience. Predictive and prescriptive analytics capacities will refine forecasting to include diverse source inputs from emerging markets to improve supply chain resilience.

The Human Experience Meets AI

Given global challenges affecting supply chains, human intelligence paired with the power of AI-driven planning will help navigate complex situations.

Human insights into global nuances and logistical complexities augment AI’s data-driven capabilities and can foster more thoughtful decision-making to enhance both efficiency and safety.

This balance could better equip supply chains to navigate the unpredictable effects of regional conflicts and economic instability.

The company had been struggling with managing its shipping communications through its transportation department, which was causing significant time and resource constraints.

The breakthrough came when Syfan Logistics was referred to the chemical company by an existing customer. Recognizing the need for a more efficient solution, Syfan built a strong relationship with the company and shared how their transportation department could benefit from their expertise.

Previously, the chemical company had been handling all customers throughout the order process. This way was inefficient and created a heavy workload.

After an order was placed, they would assemble it and manually email the customer the bill of lading when it was ready to ship. This process often resulted in numerous customer inquiries for updates, which further burdened the transportation team.

The situation needed a solution and Syfan’s LTL team was able to provide one.

The Solution

Listen to Syfan on the Inbound Logistics podcast

Syfan Logistics listened attentively to the chemical company’s needs and swiftly implemented a simple yet effective fix. By adding notifications to their customer portal, the end customers now received real-time updates when their shipments were tendered, picked up, and delivered.

To enhance the tracking experience, Syfan’s LTL team developed a user-friendly dashboard that allowed the chemical company’s customers to track their shipments all the way to the final destination. With just a tracking number, customers could access detailed information about their shipments.

The impact of this solution has been remarkable. The Wisconsin chemical company expressed its gratitude to the Syfan LTL team, acknowledging that the streamlined communication process has saved them countless hours and enabled them to focus on more critical tasks. They also admitted that they were unaware such a service was available before partnering with Syfan Logistics.

By significantly reducing the need for customer communications, Syfan Logistics has demonstrated its commitment to providing exceptional service and support to its clients.

The company’s dedication to solving complex challenges continues to set them apart in the industry.

All their hard work and dedication to their customers is worth it.

To learn more:
info@syfancorp.com
855-287-8485
syfanlogistics.com

The exploding popularity of ecommerce in recent years entails delivering orders quickly, ensuring 99% order accuracy and communicating efficiently with customers throughout the process.

The Solution

With SOLOCHAIN WMS in place, fully supporting case picking, an activity inherent to ecommerce, TLS Emblem was perfectly positioned to fulfill orders rapidly, leaving the end customer greatly satisfied.

As ecommerce continues to grow quickly and distribution operations leaders seek to safeguard their growth through digital transformation, Emblem is positioned at the forefront of the 3PL industry.

SOLOCHAIN’s flexible WMS platform allowed Emblem to enter the direct-to-consumer market quickly and to scale based on their business needs. With more and more companies selling products directly to end customers, Emblem was able to quickly adapt to changing needs and to process orders using real-time data from the SOLOCHAIN WMS solution.

SOLOCHAIN WMS enables companies to track and trace inventory, and to manage their workforce, all with real-time visibility, while automating a greater workflow throughput thanks to advanced business rules.

This highly flexible and adaptive solution is built for companies that need a nimble, efficient, and scalable supply chain, while ensuring execution excellence. SOLOCHAIN WMS is listed in Gartner’s Magic Quadrant for Warehouse Management Systems and has been performing in more than 500 warehouses across North America.

Thanks to automated warehouse operations, SOLOCHAIN helps optimize the picking, packing, and parcel shipping phases—critical components of a successful ecommerce business. Significant time and cost savings are achieved during order processing, while errors are minimized. Improved order fulfillment means responding quickly to customer expectations for their online purchases, and acquiring new business via the ecommerce channel.

Expansion and Business Growth

Companies are choosing Emblem for their exclusive product distribution because it is committed to supporting its clients’ business growth and distribution needs, as well as to providing an outstanding customer experience. Regardless of company size, Emblem can handle the inventory, exceeding industry standards in terms of both accuracy and speed.

To learn more:
855-938-4562
www.generixgroup.com

To make this complex interaction of data and physical operations hum, “a sophisticated warehouse management system (WMS) helps companies manage and control the daily operations of warehouses or distribution centers,” says Thomas A. Deakins, managing director of the Global Supply Chain Institute at the Haslam College of Business at the University of Tennessee Knoxville.

A WMS is the hub of a network of processes and applications, working with order management systems, enterprise resource planning (ERP) software, labor management, customer systems, and transportation management systems to interface with truckload, less-than-truckload, and parcel carriers.

“A WMS gives users the tools to understand the inventory levels of their products and helps companies become more efficient in the way that they control the flow of materials inbound and outbound,” Deakins says.

Given consumer pressure for fast shipping with accurate delivery dates, a WMS improves operational efficiency, order accuracy, and inventory visibility to give shippers a competitive edge.

“I can’t imagine a situation going forward where consumers would be willing to accept that products are going to be shipped to their home in longer amounts of time than they are now,” says Dr. Robert Hooker, an associate professor at the University of South Florida and an associate with the Monica Wooden Center for Supply Chain Management & Sustainability.

Listen to the IL AI AUDIO podcast on WMS

To serve the ecommerce boom, a WMS can enable a better omnichannel fulfillment approach, pulling from the same inventory for ecommerce and retail customers, including store fulfillment for online orders.

“The WMS lets companies make sure they have inventory on the shelves because they have one shot at retaining a customer,” Deakins says. “Companies should never get to the point where they get a signal that they need to fulfill an order and don’t have the inventory.”

In the mid-market third-party logistics (3PL) arena, having the right WMS in place is a critical factor in serving the increasingly complex demands of B2B and B2C fulfillment.

“Any competitive edge that a 3PL provider can have is valuable,” says Brian Kirst, chief commercial officer at SnapFulfil, which specializes in WMS for logistics providers. “A 3PL can accelerate their growth and take on opportunities or win business because they can move quickly to meet their customers’ demands.”

The Secret to WMS Success

Since a WMS connects with many aspects of the enterprise, adopting a new system can be a daunting task from both operational and IT perspectives. The process starts with developing an internal process to identify requirements and evaluate candidates before making a significant commitment.

“Know the functionality you’re looking for and make sure you have the internal bandwidth to get the project done,” recommends David Castanon, senior director of consulting for Datex.

David Bretey, senior 3PL consultant with Extensiv, agrees.

“Have an honest talk about which functions are core to your business and which are not,” he says. “Develop some sort of scorecard so you can compare systems on an equal playing field to get the features you need and don’t end up with things you don’t need.”

There’s one secret to implementing a WMS: master data management. This means ensuring the data for inventory, customers, and other elements is clean and accurate, notes Deakins. Otherwise, the best WMS in the world won’t be set up for success.

“The ERP sends orders to the WMS fill, and if those items don’t match what is in the WMS inventory, you’ll experience lots of errors,” he says. “I don’t care what technology you’re going to implement, you will have a bad outcome.”

Here are some leading WMS providers that offer solutions to position shippers to adapt to new supply chain challenges and create opportunities to drive efficiency and customer service improvements.

SnapFulfil WMS: A Configurable Solution Tailored for 3PL Success

As shippers add ecommerce channels and brick-and-mortar fulfillment to their operations, 3PLs seek a flexible warehouse management solution such as the highly configurable SnapFulfil WMS.

Third-party logistics (3PL) providers must be ready to handle a wide variety of products, so configurability is a critical feature that makes SnapFulfil stand out from its peers.

Unlike a first-party warehouse that may rely on an ERP system to drive the business, a warehouse management system is the backbone for 3PL operations.

“For a 3PL operator, the WMS becomes the center point of all the systems,” says Brian Kirst, chief commercial officer at Synergy Logistics, provider of the SnapFulfil WMS. “Efficiency and profitability are going to drive the successful deployment of a good WMS.”

Kirst owned a 3PL for years and knows firsthand the value of configuring a solution to meet each customer’s unique needs.

“The first customer might be shipping electronics, but the 10th customer might be shipping food, which has wildly different processes, so you need to be able to configure the WMS for each one,” he says.

The 3PL space is a highly competitive, fast-growing arena, so a flexible, scalable WMS positions a 3PL to accelerate its growth by being able to accommodate a wide variety of customer situations. In many cases, the 3PL is the last touchpoint with the consumer.

“The responsibility lies with the 3PL to ensure orders are processed efficiently and accurately,” Kirst says.

As a shipper adds ecommerce channels or brick-and-mortar fulfillment to their online presence, a 3PL requires a WMS solution that can be set up for multiple configurations with little to no outside technical resources required. “SnapFulfil is built on a low-code rules engine that allows for self-configuration for users who have the resources and the expertise to do that,” Kirst adds.

Shippers and 3PLs seek out a new WMS solution that is well equipped to manage the increasing complexity of multiple sites and expanding distribution channels.

“Every time a 3PL adds a new customer, it could be a new implementation with very different requirements from the existing customer base,” Kirst says. “Being able to spin up quickly on their own timelines with internal resources is an extremely valuable option.”

One often overlooked WMS feature vital to 3PLs is revenue recognition. 3PLs frequently don’t capture tasks and activities they do on behalf of their clients, leading to revenue leakage. SnapFulfil offers an advanced 3PL billing module that can create a charge for any activity in the warehouse.

“The 3PL can create charge lines specific to each customer as an automated process to recognize revenue,” Kirst adds.

Automation is becoming a critical factor for mid-market 3PLs who are implementing tools like automated storage and retrieval systems (ASRS), autonomous mobile robots (AMRs), smart conveyors, and more. New technology known as multi-agent orchestration allows businesses to efficiently orchestrate and automate tasks across multiple tools and devices through the entire warehouse.

Synergy Logistics provides SnapControl for this purpose. SnapControl is automation agnostic, Kirst says, creating a bi-directional data conversation between the WMS and the automation. The data feeds business intelligence tools to drive dashboards that display the activity and resources within the warehouse.

At the same time, SnapControl has the ability to intelligently analyze operational data and make recommendations in case of interruption of human or automated equipment.

“It creates orchestration among the resources, so the workflow never stops in the warehouse,” Kirst says.

Extensiv WMS: A Foundation for Supply Chain Growth

3PL Warehouse Manager from Extensiv improves picking productivity, letting companies track every item in inventory from any web browser.

A WMS is more than a technology solution; it’s the key to managing inventory, labor, and other resources. Companies that don’t use a WMS to its full capability effectively give up operational efficiencies and strategic decision-making that could impede the company’s growth potential.

“If you don’t manage your inventory lifecycle, you don’t know what inventory is old and aging, you can’t understand inventory turns, and you lose track of your products,” says David Bretey, senior 3PL consultant for Extensiv.

Effective inventory control is crucial for maintaining profitability in any business. Pre-purchasing inventory requires capital, and misjudging stock needs can complicate cash flow. Overstocking unwanted items leads to tied-up funds, additional storage costs, and potential obsolescence.

Conversely, understocking popular items can result in missed sales opportunities and even the loss of customers. Inefficiencies such as expediting replenishment inventory, the cost of shipping orders multiple times, and even overtime to process late orders, inflate costs significantly.

“If you’re not managing the inventory lifecycle, that can be one of the areas where a business breaks down, not because there aren’t customers willing to buy from you but because the cost structure isn’t sustainable,” Bretey says.

A WMS is essential for companies at practically any stage to manage inventory and outbound shipments efficiently and accurately. “The minute you have more than 50 SKUs, or you’re outgrowing your garage, a WMS is critical to running a business,” Bretey adds.

If you are in the market for a WMS, Bretey advises you to seek out solutions that are both scalable and configurable. Look for systems with the features you need at a cost you can afford.

“While technology is moving fast, if you don’t think this software will serve you for five years or more, it probably is not the right choice,” Bretey says. “Switching systems is time consuming and complicated.”

With a WMS, you codify business rules, so decisions are made consistently in alignment with transportation contracts and other policies. “One of the reasons to use these systems is to mistake-proof your processes,” Bretey says. “You build rules into the system, and the system helps your employees make good decisions every day. That’s what gives you a scalable warehouse.”

An often-overlooked factor in successfully adopting a WMS is understanding the difference between configurability and customization. A configurable system allows you to arrange menus and processes using settings and preferences built into the system. It’s like setting up Microsoft Word the way you like it. Usually, there’s little to no cost involved.

On the other hand, customization means creating a unique version of the system for your company. Full customization usually requires additional investment in development and integration in addition to the baseline costs and ongoing expenses for support for future software releases.

Offering seamless integration, 3PL Warehouse Manager from Extensiv is a comprehensive warehouse management platform that makes it easy to manage inventory, automate routine tasks, and deliver complete visibility to 3PLs and their customers.

Datex WMS: Configurable Best-of-Breed Solution for Integrated Logistics

Datex Footprint WMS can handle heavy transaction volume and large numbers of users. Highly configurable, the Footprint WMS can grow with an organization as needs change.

Mid-market companies have different needs than enterprise giants or smaller 3PLs. Datex Footprint WMS was developed to serve that market with a best-in-breed solution that seamlessly integrates in a hub-and-spoke fashion with other systems driving the business.

“Our system is rarely a standalone application running in a silo. There are usually multiple integration points into various platforms, everything from ERPs to shopping carts to ASRS, robotics, and other technologies,” says David Castanon, senior director of consulting for Datex.

Datex Footprint WMS was built and is supported on Wavelength, a low-code application platform (LCAP). Footprint WMS is essentially three components: the web-based desktop tool, the mobile app, and a client portal for 3PLs to share with their clients. Wavelength (Footprint’s foundation) combines an application builder, a graphical workflow generator, and a robust API integration layer.

The LCAP layer enables citizen developers to tailor the application to fit the user experience as it relates to a specific process for a specific client, reducing the risk of data entry errors and missed operational procedures.

For example, a dry-goods shipper doesn’t need the same compliance functions as a food producer. Footprint WMS can support regulated products, including food, medical devices, and pharma, with strict compliance with tracking and traceability standards.

Highly configurable, the Footprint WMS can grow with an organization as needs change. A 3PL can enable the components required for their operations.

As requirements change, additional components are ready to go. “The beauty of the architecture is that it allows components to be configured and deployed without source code changes, minimizing the business impact of deploying new functionality when the operation requires it,” says Castanon.

Warehouse operators may search for a new WMS for many reasons. One reason is that their current system could be at the end of its useful life without ongoing vendor support for software and hardware and may be challenging to integrate with.

New Markets Require WMS Upgrades

Moving into new markets is another common trigger for a WMS upgrade. The existing WMS may be built for pallet-in pallet-out operations with mass inventory tracking. Expanding into ecommerce fulfillment requires connection with shopping platforms, the ability to rate shop parcel carriers, implement advanced pick methods, and tool configuration according to requirements.

“Companies need more than what their current WMS offers. It’s like trying to go from a two-seater car to a minivan and eventually to a sports car as the company grows without having to keep changing systems,” Castanon adds.

When a company considers a new WMS, there’s a balance between efficiency and accuracy. The big question is if the WMS will help ship more boxes in the same amount of time. With a leading WMS, better inventory controls boost order accuracy without compromising efficiency. Shipping more orders accurately improves the bottom line.

“Companies want to know how the WMS will deliver value by shipping more boxes with the same people and within the same time frame, as well as compliance and customer constraints,” Castanon says.

5 Ways a WMS Improves Business Processes

While a WMS is focused on the four walls of the warehouse, its impact extends beyond the boundaries of an organization to downstream customers, as well as upstream customers and other stakeholders in the reporting process, says Dr. Robert Hooker, associate professor at the University of South Florida and an associate with the Monica Wooden Center for Supply Chain Management & Sustainability.

Here are five areas in which a WMS will improve a company’s processes and business outcomes, says Dr. Hooker.

1. Cost reduction. A WMS will help an enterprise reduce costs by optimizing stock levels, minimizing inventory carrying costs, and streamlining processes.

2. Productivity. You can automate manual tasks such as data entry, creating a picking sheet, and inventory counting. Also, you can schedule dock doors and the labor required to match inbound shipments.

3. Error minimization. The WMS can direct put away for inbound shipments and picking and packing for outbound fulfillment, so products are tracked automatically, and workers are directed to where the correct items are located in the warehouse.

4. Visibility. The WMS tracks stock in the warehouse and can automatically replenish it when it reaches a predetermined level.

5. Customer service. By tracking inventory levels, product should never be out of stock so customer orders can be fulfilled without back orders or delays.

WMS Leaders

Datex | www.datexcorp.com/wms-solutions

The Datex WMS helps companies save time, labor, and operational costs. Developed specifically to meet the needs of third-party logistics providers, Datex Footprint WMS easily handles complex operations and any kind of inventory. The 3PL WMS helps enable businesses to meet the needs of a wide range of customers.

Extensiv | www.extensiv.com

3PL Warehouse Manager from Extensiv can help deliver sophisticated fulfillment strategies to customers, reducing costs and delivery times. The cloud-based WMS connects seamlessly with the systems your customers use, allowing you to gain visibility and control. It offers real-time inventory tracking, mobile picking and scanning, and automated billing.

SnapFulfil | www.snapfulfil.com/us/

SnapFulfil is a cloud-based, Tier 1 warehouse management system with flexibility at its core. It delivers cutting-edge technology at a fraction of the cost of traditional installations and is quick and easy to implement, providing a rapid return on investment. Once up and running, SnapFulfil is highly configurable and can adapt to meet evolving fulfillment demands.

Anyone who has shipped freight knows paperwork continues to play a big role in the LTL shipping process. The bill of lading (BOL) carries significant importance to all parties in the supply chain—shipper, consignee, carrier, and 3PL.

It contains the shipment’s origin and destination addresses, freight details, services requested by the freight owner, and other critical identifiers such as hazardous materials. In short, the bill of lading contains information the carrier needs to transport the goods in a timely and safe manner.

Completed bill of lading details live within the carrier’s freight management systems. When a shipment is tendered using a paper bill of lading, the details are manually entered, inviting errors.

These errors can mean lost time and potential added costs. This leads to delivery delays and a higher risk of damage due to additional freight handling.

Billing accuracy and invoice errors also occur due to challenges matching accounts to pricing agreements or freight reweighs and reclassification due to commodity description and classification transcription errors. It’s frustrating when a freight invoice doesn’t match the original paper bill of lading, and it can lead to disputes and payment delays.

THE SOLUTION

■ Fewer Invoice Errors. Electronically transmitting the information on the bill of lading from the shipper’s transportation management system (TMS) directly to the carrier’s management system dramatically reduces the potential for human error.

Digitizing the bill of lading leads to fewer classification and invoice issues down the road. This digitization adds up to a better customer experience and accurate billing. Pre-programmed eBOLs require specific information such as density, classification, and dimensional specifications.

■ Improved Service Performance. In addition to ensuring correct address information, there are several other ways early visibility to the complete, accurate freight characteristics assist with carrier service performance.
For example, communicating the freight characteristics to the carrier digitally enables the carrier to ensure they have the proper equipment and capacity to complete the pickup the first time.
Additionally, the carrier can begin planning the linehaul routing when they have visibility to the freight characteristics before the freight hits the origin dock.

■ Cost Savings for Shippers and Carriers. The Digital LTL Council published an article recently that states shippers can expect to see an average of 2-4% cost savings per shipment once widespread adoption of eBOL occurs. These savings will come from greater network efficiency and on-time performance, improved carrier performance, decreased dwell times, reduced safety stock levels, and better worker efficiency.

Industry-wide, this could potentially add up to $470 million in savings. eBOLs will provide information more quickly to carriers, allowing them to plan operations in advance and optimize networks. Lower costs to serve will benefit all stakeholders across the LTL industry.

It’s Time to Adopt a Digital Bill of Lading

Getting to this point—where electronic bills of lading have progressed from a promising concept to a full reality—required collaboration among all LTL transportation ecosystem stakeholders. The Digital LTL Council was the launching pad from which carriers, logistics service providers, shippers, and technology providers initiated a set of uniform standards to guide scalable automation and digitization of LTL shipments.

To find out how SMC³ LTL APIs can partner with you to achieve eBOL adoption and automate your entire shipment lifecycle, visit: www.smc3.com/ltl-api/

To learn more:
800-845-8090
www.smc3.com

www.smc3.com/ltl-api/

Typically, the responsibility for paying demurrage fees is allocated to either the shipper or the 3PL, depending on the terms of their contract. By following these strategies to avoid demurrage fines, 3PLs can go a long way to minimize costs and improve rail efficiencies for their customers:

Adjusting Work Hours

Weather, crossing delays, hazardous material shipments, mechanical difficulties, and derailment are among the types of rail delays.

Align employee work hours to the rail carrier’s schedule and stay flexible to accommodate the inevitable inconsistencies in service times. The number of rail cars and the type of business—whether linehaul or switch—will also determine the priority and level of service you receive.

All of these factors make aligning work hours according to the carrier’s operations hit or miss. Make educated assumptions around the railroad’s posted timetable and recent service history. Schedule workers around time windows, such as four-hour windows to allow for variability.

Scheduling Overtime

Optimize your overtime and staffing levels so cars can be offloaded promptly, scheduling workers during overnights and weekends if needed. Unless by special arrangement with their customer, 3PLs will often cover the cost of overtime for their workers without passing on these costs.

However, proper scheduling of labor doesn’t have to come at the expense of margins. Schedule staff in advance for weekend work without overtime such as by calling in those who won’t accrue overtime for the week (they have missed a day, etc.). Or, use other labor planning strategies like adjusting staffing levels to meet known peaks where appropriate.

Consistent Communication

Be as consistent as possible with your communications and proactive with the rail carrier to prevent delays and misunderstandings.

The majority of our communications with railroads is via email, within the carrier’s portal with their customer service teams, and occasional phone calls with local switch crews. Unfortunately today in the rail industry, shipment volumes speak louder than relationships, and having more volume helps you to get priority on the schedule.

Detailed Documentation

Rail carriers only maintain records for 30 days in their systems, and demurrage bills may be received after 30 days. Once incurred, you only have five days to dispute a demurrage fee. Therefore, it’s critical to keep comprehensive records of all service transactions and associated communication with the carrier to support disputes. From a recent analysis across three of our Texas rail-served warehouses, WSI averaged a 60% success rate.

Keep digital records of all waybills and service confirmations, such as when the railroad releases cars. Demurrage fees will be outlined by car on waybills and designated as AP, CP, or accrued demurrage.

As these strategies show, reducing demurrage fees requires careful planning, flexibility of operations, and detailed tracking. The bottom line is a win-win for the customer and the 3PL.