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


simply


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


shippers


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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