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


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


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

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