inet Freight Cost Management by inet-logistics GmbH

on Track with FREIGHT COST MANAGEMENT. The inet Transportation Management System (TMS)

CHOOSE THE DIRECT way. Detailed freight costs at the push of a button Globalization, international trade relations, new markets, shifting production locations and other market-based trends are leading to a continual increase of transporÂ tation volumes. As a result, transportation costs increase considerably if cost drivers are not identified and reduced. More stringent legal regulations and compliance requirements equal more good reasons for closely analyzing transportation management costs, regularly carrying out measures of optimization and guaranteeing traceability and transparency. The most reliable tool to permanently lower freight costs is an effective and efficient freight cost management. Cost savings can already be accomplished through consistent and automated checking of the proper use of conditions, rates, numbers and weights. As an internationally operating software company, we develop an integrated, scalable and flexible Transportation Management System (TMS) with expertise, innovative ideas and the courage to blaze new trails. This gives our customers a clear lead â&#x20AC;&#x201C; beyond standard. Our Freight Cost Management solution offers you an efficient system that allows you to reliably, quickly and economically realize your goals regarding the settlement, monitoring and analysis of your freight costs, thus ensuring your competitive advantage.

Michaela Pazderka office manager

SUCCESSFUL FREIGHT COST MANAGEMENT CALLS FOR A PLAN. From consistent rate management to daily freight cost analysis

inet Freight Cost Management offers:

Our Freight Cost Management solution facilitates

Cost optimization by

complex freight settlement processes in an easy and

preventing duplicate or faulty invoices

audit-compliant way. The system comprises a host

preventing the charging of unwarranted

of different settlement models and freight rates for every mode of transportation, thereby creating the required transparency for the prevention of faulty or duplicate invoices and the charging of unwarrant ed additional costs. This simplifies the analysis

Network Design

cost verification strengthening the negotiation position in transportation sourcing Increased reliability through frictionless interaction and communication

Transportation Sourcing

Transportation Analytics

one consistent and complete database

Container Maintenance and Claims

Freight Cost Calculator

ANALYZE

Managing global transportation networks means ha-

Transportation Order Management

Freight Invoice / Credit Note Verification

Dynamic Transportation Planning

Freight Billing / Self-Billing

Freight Cost Claiming

compliance with authorization policies

to use different settlement models, like credit note

usage-based cost allocation

and invoice procedures, for various partners within

the prevention of document reversals

one system represents a great advantage. Moreover,

the use of digital signatures in electronic

compliance requirements are fulfilled through our integrated Freight Cost Management, continuous logging of data changes, workflow-based authorization processes, traceable version management of genera-

CONTROL

Increased security and transparency through

requirements, among other things. The possibility

data exchange

Container Demands Planning

PLAN

Container Fee Settlement

KPI reports ving to comply with diverse country-specific finance

Strategic Transportation Planning

Freight Cost Simulation

automating settlement processes and freight

the use of current and proper rates

Worldwide and compliant cost control

Closing the loop – competence in each phase

additional costs

of freight costs in global transportation networks considerably.

THE INET TMS AT A GLANCE

Transportation Dispatching

AN INTEGRATED REAL-TIME DATABASE

Global Trade Compliance

Freight Cost Allocation

Dock Management

Freight Cost Calculation

Continuous Replenishment

EXECUTE Mediation

Cross Docking

Freight Rate Management

Multi Parcel Shipping

ted bills and the monitoring of electronic interfaces to the finance system.

Multi Carrier Communication

Visibility

Container Scheduling

Container Inventory Management

Freight Rating

The highlighted modules are part of the Freight Cost Management solution. Additional information on all other solutions and services can be found in the respective brochures and on the Internet at www.inet-logistics.com.

THE FASTEST WAY TO OPTIMIZED FREIGHT COST MANAGEMENT. The inet Freight Cost Management solution in detail

the planned shipments, their freight costs are pre-

properly. In a further step, billing cases that form the

calculated. To determine the right logistics service

basis for Freight Cost Calculation are generated from

provider for your shipments, it is important to be able

the transaction data that is transferred to the module.

The modules of the Freight Cost Management

to compare the costs of the various service types (ex-

solution can be used individually and in combina-

press, delivery by 10 a.m. etc.). Using the Freight Cost

tion. The service-oriented architecture as well as

Calculator module, the freight costs for a transporta-

certified interfaces ensure that all processes can be

tion request or a specific transportation order can be

combined quickly, easily and efficiently with one

determined. In addition to the rates negotiated with

Calculate freight costs based on actual shipments

another. Furthermore, they can be implemented in

the logistics service providers, benchmark rates can

Companies have to determine freight costs for a multi足

existing transportation management networks and

also be stored.

tude of transportation types and modes and settle

Freight Cost Calculation

them with diverse partners. Freight costs for one and

linked with the existing system.

the same shipment must be settled with multiple par-

Freight Rate Management

ties involved. The automated and usage-based freight cost calculation is carried out in the Freight Cost

Manage and maintain freight rates transparently

Calculation module on the basis of the freight rates,

The rates agreed upon with the individual logistics

calculation rules, VAT decision tables etc. provided.

service provider are stored transparently and

There is a multitude of calculation methods for these

detailed in the Freight Rate Management module,

freight rates. In a first step, the transportation data

regardless of their complexity and number. Rates

transferred is summed up into rating units based on

and prices for different modes of transportation (air,

the respective rules (e.g. according to tours with the

sea, road, rail), and various cost drivers (lbs, qty, mi,

same consigner, consignee etc.). In a second step, the

loading meters etc.) and cost types (freight, demur-

actual freight costs are calculated under consideration

rage, delivery attempts etc.) are deposited. The

of the rates stored.

flexible definition and maintenance of zone matrices, VAT decision tables, calculation rules and their validity enable a precise and usage-based determination of freight costs. For each billing case, rules for the application of the respective conditions are defined in decision matrices. Various currencies and their

Mediation

exchange rates, vessel exchange rates, customs

Freight Cost Calculator

rates, as well as country-specific tax-rates are

Collect settlement data, integrate legacy systems

definable. The same applies for settlement models,

and supply chain partners

Assess freight costs exactly

minimum and maximum prices, additional costs,

In the Mediation module, a valid database for Freight

Whether during the process of submitting an offer,

discounts and cost types. Exchange rates are auto-

Cost Management is generated and enhanced for the

while entering orders or later on during dispatching,

matically updated each day and taken into account

automated process. Only this way it is possible to

freight costs always play a big role. After entering

for freight cost calculation.

guarantee that freight costs are calculated and settled

determined freight costs are then allocated to the re-

Freight Billing/Self-Billing

systems involved for further processing. In addition, the invoices can also be transmitted in electronic

spective transportation orders or goods according to criteria like volume or chargeable weight. Even multi-

Settle freight costs using invoice or credit

mode shipments are no problem. Further charging to

note procedures

different recipients is an integral part of Freight Cost

When generating freight invoices, data from the

When a freight credit note is prepared, the credit note

Management. Every partner involved profits equally

executed shipments and services provided is used,

is created including the approved additional costs.

from this functionality because nowadays either

including the approved additional costs. These docu-

Afterwards it is transmitted electronically to the

logistics service providers bundle several transporta-

ments are then sent electronically to the finance IT

finance IT systems of the partners involved.

form to the invoice recipient.

tion orders or customers combine their shipments with those of other companies to reduce transpor足

In the Freight Billing/Self-Billing module, it is always

tation costs. The allocation of incurred freight costs is

ensured that only services that were agreed upon

carried out precisely for each individual goods.

according to the stipulated rates are billed and only if the respective shipments were actually executed.

Freight Cost Claiming Freight Invoice/Credit Note Verification Claim, verify and approve additional costs incurred

Freight Cost Allocation

The Freight Cost Claiming module enables logistics

Match invoices/credit notes automatically

service providers to register additional operational

In the Freight Invoice/Credit Note Verification mod-

costs online (e.g. for demurrage or delivery at-

ule, incoming documents (invoices, credit notes etc.)

tempts) for the respective shipments. The verifica-

are received electronically or entered manually. The

tion and subsequent approval or disapproval of the

items of the incoming documents are then matched

additional costs is web-based. During this process

with the freight costs already calculated. Any devia-

all partners involved have the possibility of viewing

tions are recorded in discrepancy lists and corre-

the settlement status of the individual shipments at

sponding corrective bookings (e.g. reversal debits for

any time. Notification of the approval of the addi-

exceeding freight costs) are carried out. At the time of

tional costs by the logistics service provider is car-

invoice or credit note receipt, all the required infor-

ried out in the Freight Cost Claiming module based

mation for freight invoice/credit note verification is

on predefined workflows. Authorization workflows

readily available.

Allocate freight costs depending on usage

ensure compliance with legal and business policies.

In order to correctly determine profits and losses, it is

Partners involved can be sure that only the stipu-

absolutely necessary to be able to allocate and book

lated transportation agreements are used for the

freight costs to the actual originator of the expense.

calculation. This way, additional costs are dealt with

The costs must be assigned to the order, the product

before billing and claims are processed at the proxi-

group, the goods and the business units involved. In

mate time of the physical transportation. As a result,

the Freight Cost Allocation module, the automatically

invoices are almost never cancelled.

Transportation Analytics Make decisions based on consolidated data The Transportation Analytics module enables clear

AT A GLANCE

analysis of freight costs. Daily reports based on your predefined parameters make a comparison of the

inet Freight Cost Management

actual freight costs to the projected costs possible.

freight cost calculation for all types and

Configurable dashboards with easy to understand KPIs enable central controlling and easy access to all

automated generation of invoices and/or

relevant information. With the help of these KPIs you can monitor and analyze stipulated freight costs,

modes of transportation

credit notes reliable, transparent freight cost claiming

additional costs and special fees.

entire verification of all incoming and

Freight Cost Simulation Estimate changes in the costs of transportation

exchange rates, various units of measure-

ments and VATs

management The Freight Cost Simulation module creates reliable

continuity and scalability from planning to

international compliance requirements consistent and valid data for negotiations,

tation spending. Analyses enable the comparison and evaluation of quotations in tenders, thus helping in the

KPI reporting audit-compliance through fulfillment of

data for analyses and scenarios that provide you with the best possible basis for forecasting future transpor-

outgoing freight cost bills support for international currencies,

reports and analyses

negotiation of the final rates. Hence, the optimal logistics service provider can be selected by region, mode of transportation or route. The results can be viewed and exported in tables and graphs.

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