Our client had difficulty obtaining a clear view on their costs. This was due to incomplete data, inconsistency in how costs were measured and delays in obtaining data. As their business grew it became impractical to continue using a manual, labour intensive approach to cost measurement.
Requirement
An end to end view of costs for all shipments and service levels to support the finance and pricing departments and provide senior management with a comprehensive view on where and how to manage costs more effectively.
Solution
- One integrated system providing a cost breakdown for all shipments across all modes of transport and service levels.
- General ledger mapped to operations data to calculate costs for each activity and allocate an overhead cost to each shipment.
- Clear visibility on key cost drivers i.e. shipment collection, sorting, processing, linehaul, customs clearance and last mile delivery plus sales & customer service support.
- Ability to set prices which achieve an acceptable margin.
- Identification and analysis of cost issues.
- Insights on corrective actions.
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