Transportation is a key activity in the life of companies: raw materials, components, semi-finished and finished products have to be transported to the recipients.

It's important for companies regularly calculate and allocate the cost of transport, in order to monitor the profitability of sales made.

To make things more complicated contributes the frequency with which billing errors occur in transportation: these errors affect the average annual transport costs for 1-1.5%. It means an increase in costs that can not be recovered without activity that can identify such errors and then prodromal to the credit notes request and management.

To reduce this outlay, the most organized companies adopt of "freight audit" systems (internal or external, outsourced), with the following objectives:

  • Contain or, even better, reduce transport costs,
  • Improve the allocation of transport costs to the product / line / customer,
  • Reduce transport exceptions,
  • Verify compliance with the company policy on transport.

Major obstacles to overcome to adopt a system to avoid billing errors are the chronic lack of time and specific domain expertise in the company.

These are the main reasons why an increasing number of companies choose to outsource (to specialized operators) such activity.

 

To understand how SmartVCO can support you in this: MONITORING OF TRANSPORT BILLING