Freight Payment: From Data to Intelligence

Freight Payment: From Data to Intelligence

by Marly Hazen McQuillen
14. July 2015 08:00

It’s not about the data you accumulate; it’s what you do with it.

John Powers, The Journal of Commerce

Transportation costs account for as much as 10 percent of the U.S. gross domestic product, and the number is similar for more developed economies worldwide. Unsurprisingly, shippers and their logistics providers are more than ever looking toward their supply chains to unearth cost efficiencies and control their ultimate cost of delivered goods.

Critical to their efforts is the ability to identify, garner, manipulate and interpret the seemingly countless data elements associated with a single freight movement. These range from macro analyses of costs by country of origin to the granularity of delivered cost by individual SKU number. Savvy logistics professionals are turning to “business intelligence” partners to help them fine-tune their transportation chains.

“40 to 50 percent of shippers in North America outsource to an FAP provider. While this percentage is lower outside of North America, the number of international companies outsourcing is on the rise,” said Kristy Sutton, vice president of freight payment operations, CTSI-Global, referring to freight audit and payment services. Larger companies in the United States are even more invested. “An estimated 60 percent of major corporations in North America currently outsource their freight payment function as a result of high labor, processing and technology costs. While the concept is still somewhat new in Europe, we are seeing increased interest in this type of service,” reported Tom Zygmunt, Cass Information Systems’ manager of marketing and business development.

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