22 >> 21 that got

Issue 8 2019 - FBJNA

they made in a month and

compares the charge for that shipment to what it would have been for all of the other carriers for which they have negotiated rates.” Oswald lists several services,

such as conducting more effective carrier negotiations, performing trend analyses of transportation costs, and tracking accessorial and fuel charges, to name just a few. Friedman agrees that FAPs

go beyond freight bills. He mentions a global high-tech company

“bogged “Today there are two primary areas of

focus: digitalization and globalization. “ -- Harold Friedman, Data2Logistics. TS.

down in a new product launch that needed to be executed flawlessly.” At client relationship

manager at Data2Logistics found during a quarterly review process a significant increase in dimensional- weight charges. “In their haste to get the new

product to market, the client did not realize that they had over-packaged the product,” the manager says. “This led to a product repackaging

that resulted in annual costs savings of $400,000.”

Data Management

Data management is a huge focus for shippers today. In fact,

the entire traditional

FAP industry is really shifting away from FAP to more of a Spend Management approach. Shippers know that


auditing carrier bills is not enough. “Shippers need access

“The solution uncovered several hundred thousand dollars of errors

related to numerous unique invoice numbers billing for the same

services on a single client order.” -- Craig Cameron, Cameron, A3 Freight Payment.

to data to make intelligent decisions, quickly,” comments Craig Russell, CEO of Green Mountain Technology. “Think about the holiday season. Some of our large retail customers ship 80% of their annual package volume in a 2-month span. They must be agile and confident in their decisions.” The audit is a vital part of

the process, but Russell points out, the goal with an audit is to correct and normalize data to leverage it for advanced analytics. “Advanced


are taking that data and building models of their shipping network to leverage for business intelligence so they can be agile and make data-driven decisions quickly in a rapidly changing environment,” he emphasizes. “This is how we have been able to make a big difference for customers, regularly resulting in millions in savings.” Case in point, one of Green

Mountains largest retailers saved $115 million in about five years. Better yet, Green Mountain Technology’s best- in-class audit caught a billing error that saved a Fortune 500 client $11 million. As a note, Green Mountain

Technology’s customer base is comprised of solely mega- volume parcel shippers. Its solution

is designed and

geared to their needs and complexities. “No other vendor works exclusively with

the largest

parcel shippers in the world, collectively managing over $6 billion in parcel spend,” Russell boasts. “This unique market view keeps our clients’ teams on the cutting edge of best-in-class parcel network execution.”

Relationships are Important

Friedman and Oswald touched on an issue virtually every FAP executive me n t io n :

23 >>

store—all tamper-proof. While ShipChain’s website

cites 2016 FBI statistics showing $30 billion in annual cargo- theſt losses, Monarch says the company’s current focus is on visibility, especially with refrigerated products. Blockchain reduces spoilage, cuts costs, and obviates recalls and even potential litigation, he says. Meantime, however, “The

payments piece is still being worked on,” Monarch says. “It will help you get paid a lot faster because we show everyone involved in a transaction during shipment that everything is

The release quotes CEO

Robin Gregg: “By using Express Deposit, customers will now have access to their funds via a debit card in minutes, not days.”

///FAP High-tech newcomers

include blockchain, digital- payments companies

For all the confusion and mystery surrounding blockchain, the technology is simple. It’s essentially a general

ledger whereby

granular contents are spread across hundreds of computer networks, making the “chain” immutable. Originally used for Bitcoin, blockchain is gaining currency in the supply chain. ShipChain, a logistics

newcomer, currently offers blockchain for higher visibility but is eyeing automatic payment upon delivery. “Everyone knows the cost

of freight audit is going up,” says John Monarch, CEO of ShipChain. “We can automate payments based on proof of delivery and have that truthful record of that.” Since the company was

launched in 2017, ShipChain has been featured in major publications such as Forbes. Last June Forbes reported that Anheuser-Busch InBev is “strengthening the last-mile’” with blockchain while Starbucks uses the technology to ensure ethical sourcing of its beans. Verizon, in a “Fourth

Revolution” article, illustrates how blockchain can, say, pinpoint the location in which a single salmon is caught, verify if the fisherman lied about whether or not the fish came from an illegal area, and see the salmon’s delivery to the grocery

truthful; this happened at this stage; it’s confirm-delivered, and all the payments should be released immediately.” Freight audit and payment

executives say blockchain’s not quite ready for prime time, although two companies— enVista and Cass Information Services—are members of the Blockchain in Transport Alliance, a consortium whose roster also includes Delta, UPS, and the 3PL Transplace, among others. “At this point,” says Harold

Friedman, Senior Vice President, Global Corporate Development at Data2Logistics, “we see the majority of our clients taking a similar approach: waiting for BlockChain to create a groundswell in the settlement arena.” Monarch isn’t positioning

ShipChain as a FAP competitor. “We see ourselves more as

a facilitator than anything else. Our goal isn’t to make everyone throw all their old systems out; it’s to augment what they’re doing and make it so it’s a lot more visible.” RoadSync is another high-

tech newcomer. The digital payments platform recently passed the $100 million mark in payments processed aſter just two years in operation, according to an August press release announcing RoadSync’s introduction of Express Deposit.

“We see ourselves more as a facilitator than anything else.” -- John Monarch, CEO of ShipChain.

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