Case Studies
Freight Payment
A Fortune 100 company switched from a long-term relationship with an industry leading 3PL to a start-up company.
Project Overview
Overview
A Fortune 100 diversified manufacturing company recently switched their Freight Payment process from an industry leading 3PL to LogiFlow, a start-up 3PL with breakthrough technology. As a direct result of the change, the company reduced payment tolerance variance over 99% saving over $60K annually in overpayment costs.
The Challenge
A major diversified manufacturer was struggling to pay carrier invoices timely and accurately. Their network included 1,000 suppliers and 30 manufacturing and DC shipping sites generating over 780,000 invoices annually.
The Objective
LogiFlow invented a rating engine and process that identically matched with each carriers’ rating systems. Now with the system electronically matching and paying over 99.99% of the incoming invoices, the vast majority of payments are automated with 100% accuracy. As a result, freight invoice tolerance was adjusted from $100 to $0 saving over $60K in overpayment costs annually.
Our Unique Solutions
The improved payment cycle times also delivered dramatic reductions in hidden administrative costs for the customer, the carriers, and the 3PL resulting in improved relationships and lower expenses for all parties involved. Lastly, with information and transportation intelligence timeliness and accuracy in place, everyone has a renewed confidence in the data and corresponding analytics enabling more informed and better decisions.
Technology Solutions
Reduced invoice tolerance – Delivered over $5K monthly cost savings
Faster, more accurate payment cycle – less administrative burden for multiple parties
Carrier satisfaction – better relationships/future negotiation point