FAP\\\


bringing folks together. “I think shippers see


the value of FAP as a necessary


solution given


>> 22 “Shippers look for professional


relationships. Seems data is


Tom Zygmunt, manager


of Marketing and Business Development


at Cass


Information Services, agrees. “E-commerce brings to the forefront the need to manage


contract review, management and negotiation with their carriers.” -- Allan J. Miner, CT Logistics.


parcel expenses,” he says. “Companies are looking for the ability to allocate parcel spend to meet complex general ledger requirements to understand their true cost per package.” The problem, though, is


the inconsistency of carrier billing and visibility that can be provided by a good FAP partner,” says David Wedekind, Vice


President,


Global Operations at enVista. “Carriers also recognize that the role of FAP is important.” FAPs that produce clean


invoicing deliver a reduction in Days Sales Outstanding, or DSO, the ratio of receivables to the daily average of credit sale. This, in turn, “should allow for a more strategic relationship with shippers. “ “In the next few years, I see


the relationship between FAP and carriers becoming more strategic, meaning smarter carriers will identify which providers are the easiest to work with, potentially driving more shippers to engage with the best FAP solutions,” Wedekind says. Allan J. Miner, President of


CT Logistics, agrees. He also sees the current landscape as a shipper’s market. “This is because global


economies are soft,” he says. “Shippers look for professional contract review, management and negotiation with their


Business Intelligence


Enter the brave new world of BI, or business intelligence. CT Logistics, like many other FAPs, offers its own proprietary software. CT Qlik, a highly visual and interactive dashboard, lets clients “explore across all data and instantly pivot their thinking based on what they see,” Miner says. At enVista, the BI program


includes a component that visualizes transit time by service level and impact on cost, Wedekind says. He shares how it worked in one particular case. “Leveraging the BI, our


customer was able to identify millions of dollars of express shipments that would have delivered sooner by shipping ground—at a lower cost,” he says.


“The customer was able


to build a business case for a new manifesting solution that streamlined service-level selection, resulting in $10


“Carriers also recognize that FAP is important.”


-- David Wedekind, enVista.


carriers.” These days, he says, final-


mile delivery remains the hot topic in FAP world. small-package


“This mode has


become a substantial volume of parcel audits. The data and information inherent in this delivery service is substantial, and clients wish to capture and analyze it,” Wedekind says.


that big data is just that— big. And although all that data can create that much more visibility, it can also overwhelming, thus creating a potential blind-spot.


million-plus savings annually.” In yet another example of


don’t-try-this-at-home with big data, Craig Cameron tells of a large appliance manufacturer that


used a transportation


company whose last-mile delivery services included product installation. “Since these are not truly


transportation invoices, a unique solution was needed to address the audit and data capture for these installation services,” says Cameron, Vice President, Sales/Marketing at


A3 Freight Payment. A3 deployed “a series of


duplicate checking algorithms” that used client-source data and carrier billing data that determined potential identical transactions. “The solution uncovered


several hundred thousand dollars of errors related to


Issue 8 2019 - FBJNA


“Shippers need access to data to make intelligent decisions, quickly.” -- Craig Russell, Green Mountain Technology.


numerous unique invoice numbers billing for the same services on a single client order,” he says. Cameron further notes that the situation’s resolution helped the shipper and its logistics provider identify root causes. Cass’s Zygmunt sums things up with something of a mic


23


drop: “Without the totality of transportation information, you cannot achieve the next level of savings for your company.”


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