Inbound Freight Management
Purchasing Inbound Freight
Purchasing Inbound Freight
Simplified's process creates best case shipping practices for its clients. Inbound routings can utilize these same best case practices but require coordination with purchasing departments and vendors. Typically the largest percent of transportation savings comes in this area.
Enforcing your new best case practices on your vendor base is both a one-time change an an ongoing operational process. Simplified’s can help with both. Your freight costs have changed – the decision to purchase freight included or collect needs to be re-examined. When complete – all vendors will have access to your personalized vendor routing via hard copy or our online technology. Non-compliance will be quantified for excess cost which you can chargeback to the vendor.
Many clients have “hidden freight cost” buried in vendor invoices. Simplified’s economic analysis can dig out these costs and position you to understand where the opportunity to save money exists by changing terms to take advantage of your lower freight costs.
Utilizing your automated best case practices, Simplified creates optimal routing guides for all vendors. Typically this is done via a custom website that uses all the same business intelligence as your outbound system. However, we never show your rates to the vendor. If necessary, detailed routing maps can be produced for general low-tech vendors to utilize.
Currently inbound routing is accomplished by stating a term and carrier on the PO. The difficulty is that this information is not accurate as the weight and fuel may change as the quantity of the shipment and or fuel costs may change. This is a good solution but not the optimal solution.
TrueRate Preferred Routing Map
Simplified will provide the technology to route freight in the most optimal methodology for our clients. We provide routing maps, when and where needed, integrated PO routing into a clients web portal. This enables carrier changes to be communicated directly to the vendor with little to no effort from the internal resources at our client’s site.
Vendors Input Shipment Characteristics
Vendors Get Routing Instructions from TrueRate
The ongoing control process for all vendor relationships always comes back to what you pay them. Compliance reporting identifies your costs incurred by their not adhering to your best case practices regarding routing of your inbound freight.
Simplified will document each routing violation and the excess cost you incurred by the vendors misrouting. After review – you have the information and documentation necessary to charge the vendor back for this excess cost via debit memo / reduction on their invoices. Many of our customers have automated this process.
Inbound Compliance Reporting
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