Tuesday, August 17, 2010

Zeroing In On Your True Freight Expense

Breaking down shipping costs helps you control – and retrieve – them.

How closely do you monitor the impact of your logistics and transportation costs on your sales revenue and overall profits? If you only see freight out as an expense line item, you may be missing a big part of your operational profitability picture.



One of the common complaints we hear from prospective clients is how difficult it is to measure the profitability of each customer. Sales systems and transportation technology typically don’t communicate with each other, so accurately apportioning shipping costs for each sale and each shipment is almost impossible.

Our data management technology offers solutions to bridge the gap. By including sales order information in your shipping data, TOTALogistix is able to accumulate revenues and costs for each of your customers. Matching revenue with expense enables us to perform advanced analytics, and improve the C-level visibility into profit and loss.

Capturing sales order value at the shipment line level allows benchmarking and improvement of freight revenue recovery. If you are making an effort to recover your freight costs, are you charging the right amount? Are you covering your costs, or even (gasp!) profiting?!

Knowledge is power, and we want to give the power – and the profit – to you.

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