[white paper] speed and accuracy deliver on the promise

Make the most of your energy SM

Speed and Accuracy Deliver on the Promise August 2011 / White paper

by Cathy Duncan

Summary

Executive summary .................................................................................... p 1

Introduction ................................................................................................ p 2

Delivery receipt ........................................................................................... p 3

Bill of lading ................................................................................................ p 4

Conclusion ................................................................................................. p 5

Executive summary

White paper on Invoicing Speed and Accuracy | 01

Improved cash flow via electronic bills of lading

Petroleum marketers are taking advantage of technology to automate or otherwise

streamline several aspects of their business. So it is not surprising they are

welcoming the electronic Bill of Lading (BOL) for accurate invoice processing.

The BOL supersedes the delivery receipt used in verifying where a delivery

was made and how much commodity was dropped, as well as providing the

information needed for inventory adjustments. The manually prepared delivery

receipt too often has errors that result in significant rework. For example, incorrect

identification of the supplier likely results in error in the cost or price of the delivery

and necessitates time-intensive correction.

The BOL reliably reports the supplier, products purchased, quantity of gallons

pulled and terminal — all vital data in determining how much is owed to which

supplier and the value of the fuel involved. Electronic BOLs — often accessible

within minutes of the load being lifted at the terminal — further improve business

by automating and streamlining accounting processes. They make possible

justification of the quantity invoiced with that delivered, as well as capture of

correct valuation, all in real time. This capability eliminates errors common in

manual processes and results in faster, accurate invoicing that ultimately improves

the marketer’s cash flow and profitability.


Introduction



Over the past year, a number of petroleum marketers have spent significant effort

improving the logistics side of their business. A fair majority now monitor inventory

levels through automated processes to determine the optimum time to deliver fuel

and avoid run-out. Others have invested in sophisticated on-board truck hardware

and software for communication, optimizing drivers, trucks or common carriers.

When deployed correctly, both areas have shown some real return on investment.

But the heavy lifting isn’t over when the fuel is delivered and “post delivery”

improvements are drawing some real attention as marketers are making a real

push to gain greater efficiency.

Marketers looking for the next big wave of improving profitability are drilling down

now on getting the details right in the final phases of their fuel transactions.

Processing an invoice may sound simple, but if the details aren’t perfect, there can

be a cascading impact on all concerned parties. Two key documents control the

accuracy of those details: the delivery receipt and the bill of lading.



Delivery documents are generated by the driver or

carrier and enable billing and accounting staff to

verify where a delivery was made and the number

of gallons that were dropped. Now they know

who and what to invoice. If it is a company-owned

retail outlet, they know how many gallons to add

to that location’s inventory and reconcile that all is

in balance.

Unfortunately, the driver doesn’t always get the

details correct. While the chance of error on

where the delivery was made is low, the chance of

transposed gallons, incorrect products, the wrong

supplier or terminal on a delivery document is too

often at an unacceptable rate. When any of these

go wrong, the true amount of re-work to correct

these transactions can be surprising.

In a simple example, driver paperwork is processed

but the wrong supplier is on the paperwork.

Perhaps it is the original supplier the driver was

supposed to use, but they were out of product

and he had to use a different one. When

accounting processes the paperwork using an

incorrect supplier, it is highly likely that the price

is not the same. This results in either a customer

billed at the wrong price or inventory at the

store being costed at the wrong value. This

error often doesn’t come to light until the real

supplier invoices your company and the mistake

is uncovered. Hours of research and correction

time later, the transaction is finally right but with

a delay in collecting from the customer — which

impacts cash flow.

Marketers are discovering that equally important

(perhaps more so), is the bill of lading. The Bill of

Lading (BOL) is the only document that can be

reliably used to determine the accurate gallons

pulled, the supplier, terminal and actual products

that were purchased. It’s the real driver of what

is owed to the supplier, the price of fuel for the

invoice and the value of the fuel being placed in

the tanks at a retail location.

Delivery receipt



Bills of Lading

Marketers are discovering that equally important

(perhaps more so), is the bill of lading. The Bill of

Lading (BOL) is the only document that can be

reliably used to determine the accurate gallons

pulled, the supplier, terminal and actual products

that were purchased. It’s the real driver of what

is owed to the supplier, the price of fuel for the

invoice and the value of the fuel being placed in

the tanks at a retail location.

The availability of electronic bill of lading data has

more than tripled over the past few years and is

often accessible within minutes of the load being

lifted at the terminal. These electronic BOLs help

automate and streamline manual processes, while

improving cash flow and profitability. Marketers

are using them to eliminate the errors in delivery

info, shorten the time it takes to accurately

invoice customers and speed collection of their

receivables. Common carriers are also using them

to ensure that the information collected for their

drivers is accurate as well. Finally, retailers are using

them to validate not only that what they are being

billed was actually delivered to their stores but

also to capture the right valuation improving store

reporting and profitability. And even better, each

are using them to present more understandable

documentation to their staff, their customers or to

archive for when the outside auditors need instant

access. This new wave may be just the one you’ve

been waiting for.

Conclusion


White paper on Energy Efficiency | 05

Utilizing an information management system or service that creates electronic

Bill of Lading documents reduces the manual linking between suppliers and

downstream marketers and retailers; as such, it is the logical next wave in

improving the supply chain. Electronic BOLs eliminate costly paper handling and

inevitable errors associated with manual re-entry. As a result, hours a day are

shaved from accounting processes, invoicing is faster and profitability is improved.

August 2012

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Schneider Electric USA

9110 West Dodge Road Omaha, NE 68114 Phone: 1-800-391-1175Fax: 1-402-255-8125http://www.schneider-electric.com

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