Purchasing
Sales Operations
Product Article Master
Logistics
Finance
- Accounts Payable
- Invoice verification & posting invoices
- Making payments to vendors & queries
- Goods receipt and invoice receipt clearance
- Analyze vendor open line items
- Accounts Recievables
- Scheduling a dunning run
- Settling customer payments & queries
- Self-billing of customer’s invoice
- Bank reconciliation
- Customer invoice clearance
- Sales Order Booking
- Daily Credit Run
- Releasing Green Orders
Market Research
Freight Cost Management
Würth Business Services offers a wide range of the Logistics Support services to ensure a seamless experience of shipment delivery for companies within the Würth Group. We aim to accelerate logistical operations by assisting Logistics teams in executing various processes. We have a team of experienced and well-trained professionals who excel in handling non-core processes.
Among many processes, Freight Cost Management is one of them. Freight forwarders send the invoices that contain the cost and the ordered quantity. We provide freight cost management services by evaluating the freight invoices. We check whether the cost mentioned in those invoices is in accordance with the conditions agreed with the logistics service provider. If there are any discrepancies such as over-billing or incorrectly priced shipments, then we contact the suppliers and claim the difference.
Work Flow
WORK FLOW OF THE PROCESS
01. Evaluate
Evaluate the invoices received from freight forwarder
02. Check
Check if the cost mentioned in invoices is in line with the conditions agreed with the logistics service provider
03. Solve
Solve the discrepancies if any
Benefits
Value-added
BENEFITS OF OUR CUSTOMERS
☞ Maximize the margins with accurate calculation of total freight costs
☞ Claim the due amount from forwarders in case of discrepancies
Transition
TIME TAKEN FOR TRANSITION
Step 1
Analysis of requirements – 2 Weeks
Step 2
Documentation – 1 Week
Step 3
Transfer – 1 Week
Step 4
Step-by-step implementation – 1 Week
Case study:
Optimizing Manual Freight Cost Management for Optimizing Profitability
Introduction:
In the world of logistics and supply chain management, efficient freight cost management is essential for controlling expenses and maintaining healthy vendor relationships. Our customer, Würth Industrie Service GmbH & Co. KG, recognized the need for streamlining the Freight Cost Management process. We provided services to evaluate and manage freight invoices. By meticulously assessing invoices against agreed-upon conditions, we ensured accurate billing, minimized overcharges, and maintained cost-effective logistics operations.
Problem:
Our customer encountered challenges in effectively managing and evaluating freight invoices received from forwarders. The customer needed to invest a lot of time and the process was intricate. There were possibilities of potential errors in invoice assessment, delays in detecting discrepancies, and difficulties in communication with suppliers for resolution. This inefficiency hindered the company's ability to control freight costs and maintain transparent vendor relationships.
Solution:
Recognizing the need to enhance the Freight Cost Management process, we implemented a systematic approach to improve invoice accuracy and streamline cost control efforts. Our key solutions included:
1. Meticulous Invoice Evaluation: We initiated a manual process to meticulously evaluate freight invoices. This step aimed to verify that the costs mentioned aligned with the agreed-upon conditions set with the logistics service provider.
2. Discrepancy Identification: Upon assessing invoices, we manually identified any discrepancies, such as over-billing or incorrect pricing. This step was crucial for accurate cost management and timely resolution.
3. Supplier Communication and Claim: In case of discrepancies, we contacted the suppliers to discuss the differences and claim the correct cost amount. This process facilitated open communication and prompt resolution.
Results:
The changes implemented in the Freight Cost Management process led to significant improvements in cost control accuracy and vendor relationships for Würth Industrie Service GmbH & Co. KG. Key results included:
1. Cost Control Accuracy: By employing meticulous invoice evaluation and discrepancy identification, we reduced the possibility of overcharges and incorrect pricing. Accurate invoice assessment minimized the financial losses.
2. Vendor Relationship Strengthening: The manual communication and claim process led to an increase in transparency and collaboration with suppliers. Timely discrepancy resolution improved vendor relationships.
3. Enhanced Financial Management: With accurate and reliable invoice evaluation, our customer experienced an improvement in overall financial management. Minimized discrepancies positively impacted the customer’s financial management.
4. Time Savings: Our approach led to significant time savings per month. We saved nearly 167 hours for our customer in a month. This saved time can be utilized for executing different core operations.
Conclusion:
By transferring the Freight Cost Management process, our customer ensured accurate invoice evaluation and cost control. By implementing meticulous invoice assessment, discrepancy identification, and supplier communication, we successfully improved cost control accuracy, vendor relationships, and financial management. While automation was not involved, the results highlight the value of a well-executed Freight Cost Management process in maintaining effective logistics practices and delivering cost-effective solutions.