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The client, Trax is a leading technology company offering spend management solutions that empowers organizations with globally complex supply chains to gain control and visibility into their transportation spend. The client works with global companies that deal with multiple trading partners and process huge volumes of invoices every day. The client through Freight Audit Payment (FAP) services ensures every single shipping invoice is received, audited, and processed on-time every time with utmost efficiency. The transaction entails auditing thousands of invoices every day for multiple clients with a goal to achieve best “First Pass Yield” for a daily invoice traffic. This requires complete visibility and accuracy of rates of all shipping partners. Optimizing logistics and transportation spend is critical for customers dealing with multiple carriers and hence efficient audit management is an absolute must to save operations costs for the services offered.
Trax after receiving large number of invoices on behalf of its customers, performs a thorough audit before advising on the payment, where they look for discrepancies in the invoices received against the agreements and rate sheets between the customers and their carriers. Rate sheet consists of detailed information for the payment to be processed.
The rates are always volatile and change frequently based on changes in the transportation costs, fuel prices, etc. Hence the rate sheet has to be constantly updated with latest changes. With this situation, the client faced the following challenges:
- With increasing volumes of transactions, the time and effort required to perform the audit through multiple systems or doing manually was taking more human resources and effort, adding to the costs.
- Lack of common organizational visibility to all rates across all modes and carriers.
- Constantly updating rates and ensuring approvals by all stakeholders was taking excessively high time.
- Managing exceptions was a task requiring additional time to resolve and maintain them.
Substantial reduction in time and resources to perform the tasks of auditing leading to increased productivity.
Automating the core aspects of the auditing process has resulted in reductions in the costs, therein improving profitability and ROI.
Better assessment of the performance of the various delivery partners based on the value of “First Pass Yield”.
Complete and shared visibility to all rates and advanced notification of rate management between the customer and the carriers.
Kanerika with its deep technology expertise, developed the following solutions to streamline the entire auditing process for Trax.
Rate Manager
Kanerika along with Trax Team developed a custom product to tackle the issue of maintaining multiple rate sheets and agreements.
The solution covers all modes, and other details required for rate management. The Rate Manager solution brings the customers and their carriers together in a single online system that ensures rates are up to date, and that they conform to all data requirements for audit and operations. The solution handles changes to the rates due to multi-currency, fuel prices, taxes, or any other disruptions in the market and provides latest agreed rates. Kanerika used APIs for integrating rates with in-house systems and provides advanced notifications required for rate management.
Rate Audits
Kanerika along with Trax Team developed a customised application for automating auditing as much as possible. This is a rule-based engine that compares the invoices against the agreed rates. For invoices with any discrepancies between them, the exceptions are raised which are then passed on to the auditors for further actions. It enables companies to work towards 100% “First Pass Yield”. The two steps of auto auditing and exception management drastically reduced the manpower requirement to manage the audit process. This also reduced the cost of performing the auditing process and improved efficiency.
Security team can easily identify any data security breach through the new data architecture. And this allowed them to take action momentarily.
The executive gets detailed information on their products and delivery processes. It also shows what kind of data is present in the systems.
Security team can easily identify where the sensitive data is flowing and take corrective measure on them.
Why Kanerika?
Kanerika is a niche consulting firm building efficient enterprises with deployment of automated, integrated and analytics solutions. Kanerika enables efficient enterprises through its unique digital consulting frameworks and AIOps enabled compostable solution architecture. We partner with some of the top vendors to solve some of the critical data and process related challenges. We help some of the top brands across the globe in increasing their speed to respond in evolving market conditions, reducing their cost of operations, empowering them with the right tools and insights for effective decision making.
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