Outbound logistics is a major expense to many companies. Although competing with products and services is often seen as primary source of competitive edge, freight expenses always add to the total price. This in turn affects the attractiveness of company’s products. Adding a profit margin to customer freight price is often implemented, since arranging freight service adds to costs.
A common problem is inconsistent customer freight pricing by sales personnel. Deliveries are promised free of charge to close the sales or freight price that does not reflect the actual expense is given. Subsidizing customer freight is a slippery slope which diminishes overall profitability. Inconsistent pricing means that company treats its customers unequally.
Logentia provides an easy-to-use customer freight pricing tool which can be implemented from zero to throughout the organization in a matter of weeks. Company’s freight contracts are digitalized in Logentia’s system which enables optimal carrier to be selected every time in terms of cost, delivery time or other parameters. Profit margin can then be added to the price corresponding with optimal carrier. The tool interface can be anything from a mobile phone app to full ERP-integration.
Here’s how Logentia’s customer freight pricing tool improves your EBIT: Freight is bought economically to customer’s benefit and controlled profit margin is implemented to your company’s benefit.
Sign up for a free demo in order to understand how Logentia’s customer freight pricing tool can help you improve your EBIT.
Transportation contracts are cumbersome and difficult to compare because the price- and delivery time tables are provided in many different formats. Various spreadsheets are stored somewhere on a network drive and only a few employees have access to the information. This is still common practice in many companies even though transportation costs is a major cost contributor.
The selection of the best transportation company for a specific shipment (A specific route and load) is a static process that is reviewed a couple times a year at best. Goods are moving but transportation costs are not optimized when delivery time requirements and shipping profiles are changing. The process is static, not dynamic and optimized for the particular shipment. This is in many cases due to the lack of transportation contract transparency. Information is not easily available in an easy to use format for the people who are actually ordering the transportation.
Logentia has developed a solution to this problem. Our cloud based service digitalizes and stores your transportation contracts and provides the price- and delivery time information for all available transportation alternatives, just like ebookers.com helps you find the best flights. The information is available through an intuitive web interface where you can find all the information you need.
Transportation costs are a major spend for many companies. In manufacturing and whole sale industries the cost equals between 3-6% of net sales. Logentia’s solutions can help you save cost and help you improve your bottom line. Our customers save in average 15% of their total transportation costs, when they use our digital solution. Are you ready to take new technology in use to save transportation costs and improve your EBIT?
Our experts can help you understand how our system works and how it can help your business:
• In only a few seconds, our system can help you choose the most efficient option for each shipment from your current transport contracts.
• How to choose the best transportation service based on price, delivery time, delivery days or CO2 emissions. (Logentia keeps the fuel surcharges, road taxes, sulphur surcharges and other price factors up to date).
• After making your optimal transport selection, you can order the transportation electronically and print out the freight documents and parcel labels through the integrated transport administration system.
Sign up for an expert discussion and online demo in order to understand how you can optimize your transportation costs.
Transportation costs is a major spend especially in whole sale and manufacturing industries, in many cases counting up to between 3-6 % of net sales. Despite the importance, transportation contract tendering is still often carried out in traditional and ineffective ways.
Digitalization has made new effective operating models possible for transportation contract tendering. Logentia’s innovative technology enables powerful combination analysis and simulations based on digitalized freight offers and actual historical transportation transactions from the past 12 months. The analysis gives you powerful new insights about your transportation contracts. Tendering based on this new insight can help you save up to 30% of your transportation costs. This was for example something Logentia helped customer Nanso Group to achieve.
Is your organization’s annual transportation spend more than 300 000 EUR? Are you ready to take new technology in use to save transportation costs and improve your EBIT?
Logentia offers a complete solution to help you reach your saving targets with best-in-class technology and know-how. We support you with:
1. RFQ creation – taking into account your special transportation needs
2. Usage of an eSourcing system in your tendering process
3. Making a combination analysis and simulation based on your digitalized freight offers and your actual historical transportation transactions from the past 12 months
4. Drill-down reporting and analysis to select transportation partners that fit your organization the best.
Logentia offers tendering services with full commitment to the achieved results. Our success and remuneration depends on your success.
Sign up for an expert discussion and demo in order to understand how Logentia’s analytics can help you improve your EBIT.
