HOW TECHNOLOGY CAN HELP THE OCEAN FREIGHT AUDIT

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ABOUTXENETA

At Xeneta we believe there is an untapped potential for everyone in the industry, to systematically learn from our individual and collective efforts. We hold true that "if you cannot measure it, you cannot improve it". That’s why we think actionable metrics is the key to continuously evolve for every business, and ultimately the entire industry. Rethinking global logistics is the vision of Xeneta.

With international experience from the logistics industry, we have first-hand knowledge of the challenges related to high volatility and lack of transparency in the ocean freight market. By combining logistics background and information technology expertise, we found the solution to these challenges.

WE ARE TRANSFORMING GLOBAL LOGISTICS

ARE YOU PAYING THE RIGHT CONTAINER

FREIGHT RATES?

DISCOVER SAVINGS POTENTIAL IN REAL

TIME.

CONTACT US.

THE BUZZ TODAY IS ALL ABOUT CONTROLLING OCEAN FREIGHT COSTS. PROFIT MARGINS ARE UNDER PRESSURE, SO IT'S IMPORTANT TO KNOW IF YOUR CARRIER IS INVOICING AT THE CONTRACTED RATES, OR IF FUEL SURCHARGES ARE APPEARING MYSTERIOUSLY ON THEIR INVOICES TO YOU.

MANUFACTURING AND SELLING A PRODUCT IS EASY; BUT MARKET-SHARE AND PROFITS LIE IN SEEING WHO CAN

GET THAT PRODUCT TO THE CUSTOMERS CHEAPEST AND FASTEST.

MANAGEMENT: GOING ON THE OFFENSIVE

MANAGEMENT OF PROFITABLE SHIPPERS IS COGNIZANT OF THESE ISSUES, AND SETS A CORPORATE TONE THAT LOGISTICS, OR LOGISTICS MANAGEMENT, IS TO BE CONSIDERED AN IMPORTANT SEGMENT OF MANAGEMENT PLANNING.

ABOUT 5 YEARS AGO, THE ABERDEEN GROUP IDENTIFIED THE FOLLOWING COMMON FACTORS IN COMPANIES THEY CONSIDERED “BEST-IN-CLASS” SHIPPERS. THOUGH, YOU MAY SAY THAT THE REPORT IS DATED, IT ACTUALLY STILL HOLDS TRUE TODAY.

ARE YOU PAYING THE RIGHT CONTAINER

FREIGHT RATES?

DISCOVER SAVINGS POTENTIAL IN REAL

TIME.

8% OF THEIR CARRIERS WERE COMPLIANT IN THEIR

45% WERE COMPLIANT IN THEIR CONTRACT COSTS

65% REDUCTION IN THEIR FREIGHT COSTS ANNUALLY(PER UNIT CARRIED)

THESE COMPANIES FEATURED IN THE STUDYENSURED THAT THEIR CARRIERS WERE:

THE OCEAN FREIGHT RATE AUDIT.

MANUFACTURING AND SELLING A PRODUCT IS EASY; BUT MARKET-SHARE AND PROFITS LIE IN SEEING WHO CAN

GET THAT PRODUCT TO THE CUSTOMERS CHEAPEST AND FASTEST.

TOO-SMALL AN AUDIT IS A STATISTICAL WASTE OF TIME AND EFFORT.

TOO LARGE AN AUDIT ADDS EXTRA COSTS THAT MIGHT NOT BE WORTH THE SALARIES EXPENDED IN RECOVERED-COSTS

IF A COMPANY AUDITS EVERY INVOICE, IT LIKELY COSTS AS MUCH IN PERSONNEL OR ADDED TECHNOLOGY AS IS SAVED IN FINDING ANY ERRORS. WITHOUT SOME LEVEL OF AUTOMATION, PERSONNEL COSTS MAKES AN AUDIT COST-INEFFECTIVE:

IT'S IMPORTANT TO REMEMBER THAT THE FREIGHT AUDIT IS AN AFTER-THE-FACT ISSUE.

REAL SAVING IN SHIPPING AND LOGISTICS COMES NOT JUST FROM BEING INVOICED PROPERLY, BUT RATHER FROM USING PERFORMANCE AND INTELLIGENCE DATA FOR FUTURE SOURCING AND PROCUREMENT OF FREIGHT.

OUTSOURCING IS AN ANSWER, BUT USUALLY NOT A GOOD ONE. OUTSOURCING IS AN INEXPENSIVE ANSWER TO HANDLING PAYABLES, BUT UNLESS CARRIER INVOICES ARE LINKED TO THE APPROPRIATE FREIGHT CONTRACT, THERE IS

WHILE FUEL ISN’T AS BIG A FACTOR FOR RAILWAY COSTS, IT DOES MAKE UP APPROXIMATELY 20 PERCENT OFTOTAL OPERATING COSTS, AND CONSTITUTES A MAJOR LINE ITEM FOR RAIL COMPANIES

A HOLISTIC APPROACH TO FREIGHT SPENDING

THOSE WHO WERE CATEGORIZED AS “BEST-IN-CLASS” COMPANIES BY THE ABERDEEN REPORT USED A FREIGHT INVOICE AS THE STARTING POINT TO MEASURE THEIR CARRIERS.

THESE BEST-IN-CLASS COMPANIES POSSESSED A MANAGEMENT THAT PROACTIVELY WORKED TO CONTROL AND/OR REDUCE LOGISTICS COSTS BY THE UTILIZATION OF DEDICATED IN-HOUSE STAFF.

THESE BEST-IN-CLASS COMPANIES POSSESSED A MANAGEMENT THAT PROACTIVELY WORKED TO CONTROL AND/OR REDUCE LOGISTICS COSTS BY THE UTILIZATION OF DEDICATED IN-HOUSE STAFF.

THESE METRICS OFFER EVIDENCE OF THE DIFFERENCES IN RESOURCES DEDICATED TO LOGISTICS MANAGEMENT BETWEEN BEST-IN-CLASS AND LAGGARD COMPANIES:

A SINGLE PERSON OR DEPARTMENT MANAGES GLOBAL LOGISTICS

70%

BESTIN-CLASS LAGGARD

49%

24%

33%

30%

19 %

44%

58%

64%

69%TRANSPORTATION PROCUREMENT MANAGED GLOBALLY

TRACKING OF FREIGHT COSTS INCLUDING FUEL SUBCHARGES, DEMURRAGE, DETENTION, DAMAGE

PRACTICE MULTI-ROUND FREIGHT BIDDING

OVER 90% OF FREIGHT INVOICES ARE AUDITED

THE KEY TO GAINING CONTROL OF YOUR FREIGHT COSTS IS HAVING ACCESS TO FREIGHT COST DATA AND THEN UTILIZING THAT DATA TO SEE WHERE COSTS CAN BE REDUCED. FOCUSING ON ROOT CAUSES ENABLES THE COMPANY TO GAIN A FULLER UNDERSTANDING OF WHERE THEIR FREIGHT MONEY IS BEING SPENT – AND IF IT IS BEING SPENT WISELY.

LEARN HOW XENETA CAN HELPYOU GET INSIGHT AND

INTELLIGENCE INTO YOUR GLOBAL OCEAN FREIGHT PRICES AND CHANGE YOUR LOGISTICS

BUSINESS:

REQUEST DEMO NOW

THE KEY TO GAINING CONTROL OF YOUR FREIGHT COSTS IS HAVING ACCESS TO FREIGHT COST DATA AND THEN UTILIZING THAT DATA TO SEE WHERE COSTS CAN BE REDUCED. FOCUSING ON ROOT CAUSES ENABLES THE COMPANY TO GAIN A FULLER UNDERSTANDING OF WHERE THEIR FREIGHT MONEY IS BEING SPENT – AND IF IT IS BEING SPENT WISELY.