The up-front benefits of utilizing a single provider for both a transportation management system (TMS) and freight audit solution are clear: shorter implementation times, reduced costs, and greater control. But what about on the back end? Combined TMS and freight audit services can have a major impact on reporting and other behind-the-scenes efforts—and these benefits should not be overlooked.
Complete picture, deeper insights
Shipment data, tracking data, and freight invoice data. These three pillars of supply chain management are like legs on a stool: when one is missing or broken, the results will be wobbly at best. But when shippers are relying on disparate providers for their TMS and freight audit services, pulling those three pillars together is a constant challenge. Even when they can consolidate their data, it’s rarely as complete or clean as it would be if it was all flowing through a unified logistics ecosystem.
Working with a single provider for TMS and freight audit services creates that seamless ecosystem, ensuring shippers have a complete, accurate, and up-to-date view of the entire shipping lifecycle. This allows shippers to make better decisions on the front end, like using carrier performance metrics to inform contract negotiations. When combined with a powerful business intelligence process, it can also lead to better insights—meaning more improvements can be made and more cost-cutting opportunities seized.
Fewer surprises, better pricing
Trying to align expected and actual costs leaves many shippers tearing their hair out. Even if they think they’re marking up the shipping costs charged to the customer to create a profitable buffer, all it takes is a small oversight—like a weighing error or unforeseen accessorial charge—to leave them footing the bill for transportation. Even if it’s only a few dollars over, when this happens enough times, it can quickly eat away at profit margins.
The enhanced visibility that combined TMS and freight audit services provide makes it much easier for shippers to compare expected and actual costs. That way, they can understand the true level of variation they’re dealing with, adjust their rates and TMS logic accordingly—and stop losing money.
Stronger accrual process, clear view ahead
A weak freight accrual process can leave shippers relying on guesswork to predict their freight spend—which isn’t ideal when there are thousands or even millions of dollars at play and massive budgeting decisions on the line. But when their company’s logistics data is siloed in different providers’ systems, finance departments often have little choice but to rely on past data and averages, which can’t account for recent trends and shifts.
When shippers rely on a single provider for both their TMS and freight audit services, on the other hand, accounting for open liabilities is simple. A pending or unpaid invoice is no obstacle because shippers can look to the data from their TMS to understand what they’ll soon be paying. And since working with a single provider allows for a more seamless process anyway, shippers can easily pull accurate accrual data on demand—and ensure their exact requirements are accounted for.
Combine TMS and freight audit services for a tighter supply chain
Despite the benefits that combined TMS and freight audit services can bring to shippers, few logistics providers have the rich technical and industry expertise required to deliver both services well.
We do. At CTSI-Global, we’ve been in the logistics game for more than 60 years. We’re committed to providing not only leading-edge solutions built from the ground up but also a consultative approach that helps shippers get even more value from their solutions.
Elevate your reporting. Contact us today.