An effective freight accrual process provides supply chain managers with an accurate picture of their freight spend and open liabilities during any given accounting period—allowing them to make more informed and strategic decisions going forward. The more robust the accrual process, the better the decision-making it will drive.
Unfortunately, many freight accrual processes are not particularly robust. Unprocessed and unpaid invoices aren’t accounted for properly. Averages are used in place of accurate, up-to-date information. The end result is a lot of guesswork—and a lot of inaccuracy.
Without the right tools, actionable data can get lost in the shuffle. Here are a few ways CTSI-Global’s cutting-edge technology can streamline and simplify the freight accrual process, giving supply chain managers and leaders greater visibility into what they’re paying.
Accurate data equals better balance sheets
Many companies base their accruals on a general average. But this figure doesn’t take into account quarterly or even monthly fluctuations in demand—or the many ways transportation rates can shift dramatically from one year to the next.
Carriers can go out of business. Political events can disrupt production or distribution. Unexpected disasters can wreak havoc on supply chains. If shipping managers are using last year’s average to forecast freight spend for the quarter, they may get a shock when the final bill comes in.
CTSI-Global takes the guesswork out of the accrual process. Using our proprietary technology, we can pre-rate orders for which a shipper has yet to receive an invoice, ensuring projected costs are accounted for and calculated correctly. Once the invoice is received, we match it to the shipment, then wait for it to be paid before removing it from accruals. This automated approach eliminates ambiguity and reduces human error, giving supply chain managers a complete and accurate picture of their liabilities.
We can provide accrual information on a quarterly, monthly, or even a weekly basis, depending on a shipper’s needs. Unlike our competitors, we also offer powerful business intelligence capabilities baked into all our solutions, allowing supply chain managers to look at their data whenever they need them—so they always know what they’re paying.
Dynamic reporting and forecasting build confidence and provide clarity
Leaders want to know exactly what they’re paying for and why. With CTSI-Global’s advanced reporting capabilities, supply chain managers can generate customized reports that are tailored to their leaders’ preferences—whether that means granular and detailed or high-level. This can bolster leaders’ confidence in their supply chain operations, making them more amenable to requests and other needs.
Another benefit of utilizing leading-edge tools in the freight accruals process is the ability to forecast with a much higher degree of accuracy. At CTSI-Global, we’ve built predictive analytics into our tools, allowing shippers to easily analyze historical data and trends and forecast what they can expect to pay in the coming months. This makes it easier to prepare for what’s ahead—and adjust their strategy accordingly.
Make the most of the freight accruals process
Going with your gut can sometimes pay off—but not when it comes to understanding your liabilities and forecasting future spending. Instead of relying on instinct or stale averages, optimize your freight accruals process with real-time data, next-level analytics, and industry-leading technology.
Don’t be left in the dark. Gain clarity: contact us today.