1 Welcome! Welcome to The Value of a TMS and Logistics Services for Effective Inbound Freight Management Webinar Presented By READ MORE ABOUT FREIGHT BEST PRACTICES AT THE CERASIS BLOG AT
2 Introduction Presenter: Adam Robinson, Marketing Manager Company: Cerasis Adam Robinson oversees the creation and execution of the marketing strategy for Cerasis. Cerasis is a non-asset based third party logistics service provider who specializes in freight technology solutions and integrated freight management services.
3 Webinar Agenda This 45 to 60 minute webinar will cover the following material around inbound freight management: An Introduction to the Landscape of How Big is the Problem of Inbound Freight Management 3 Challenges Logistics Executives Face in Inbound Freight Shipping 8 Objectives to Consider and 4 Areas of Focus for Confident Inbound Freight Management How TMS Automation Aids in Inbound Freight Management and What To Require in a TMS The Advantage of Combining both expert service and technology for Inbound Freight Management Conclusion and wrap up Q&A Session
4 State of Inbound Freight How big is the problem of inbound freight management? More than 40% spent on inbound shipping. Shippers report inbound freight management is a key focus point. 40% 75%
5 State of Inbound Freight How big is the problem of inbound freight management? One Company Example Showing the Sheer Volume: $18 Million in Inbound Freight Over 100 Carriers, despite negotiations to have only 5 preferred 90% 90% of Shippers surveyed in Aberdeen say they are not prepared to manage inbound freight!
6 3 Inbound Shipping Challenges Lack of Visibility Where is the freight? When will it arrive? How much will it cost? It gets there when it gets The Manual Process of Inbound Freight Management Piecing together information from internal paperwork to get info such as tracking, Bill of lading, etc. Going to multiple Carrier Websites to make phone calls Putting together comprehensive reports there. =
7 3 Inbound Shipping Challenges Lack of Control Companies develop routing guides and plans for suppliers but have little control if they are followed and no way to enforce efficiently Most POs are Ex Works (EXW) & buyer pays inbound freight costs & takes on risk of delivery Focus is on Outbound for customer service, meaning resources for inbound are limited.
8 Aberdeen Research Group Rates Survey Last 2 Years 3 Inbound Shipping Challenges Rising Freight Costs Increase of 14.5% in truckload rates 11.5% increase in LTL and ship rates 15.1 % increase in international air rates Other areas of Cost Savings Logistics Managers Must Consider: Reductions in staff size Smaller IT services budget Increase centralization of shipping
9 8 Objectives for Inbound Freight Programs Inbound Freight Management is An Area Each Shipper Can Improve Savings in inbound freight go directly to the bottom line! Management of inventory is critical to business success Inbound freight involves the management and control of freight from: Domestic and offshore vendors, Consolidation of vendor shipments, Direct shipments to Retail sites and customers at home, multiple shipping points, and Warehouse cross dock opportunities for Retail replenishment and backorder processing.
10 8 Objectives for Inbound Freight Programs Effective Inbound Freight Management Increased customer demand requires better inbound flow of product for improved customer service! Management of Inbound Freight affects: Inventory Control Overall Warehouse Productivity Customer Service Levels Factors Increasing Difficulty of Managing Inbound Freight: Rising Fuel Charges Increase in offshore product sourcing Carrier changes & rate increases Multi-Channel
11 8 Objectives for Inbound Freight Programs 8 Inbound Freight Objectives 1.Reduced freight costs and improved bottom line 2.Improvement in on-time deliveries 3.Reduction in purchasing lead times 4.Less handlings and damage 5.Lower inventory levels and reduced carrying costs 6.Providing maximum visibility into the process 7.Improvement in warehouse productivity 8.Increased customer service
12 4 Areas of Focus to Meet Inbound Freight Goals 4 Key Issues or Areas that Warrant Attention In Inbound Freight Management Vendor Compliance Freight Paid vs. Freight Collect Visibility and System Control Vendor Relationships
13 4 Areas of Focus to Meet Inbound Freight Goals 1. Vendor Compliance A Vendor Compliance Program (VCP) should: 1. Define vendor expectations 2. Measure and report on performance against expectations 3. Insure consistency and reliability in inbound freight management Key Performance Indicators in a VCP: On-time delivery Meet damage and accuracy demands Providing proper paperwork MISSION CRITICAL: PROVIDE & CONTROL THE ROUTING GUIDE
14 4 Areas of Focus to Meet Inbound Freight Goals 2. Freight Paid vs. Freight Collect Converting from prepaid freight to freight collect increases: Cost Reductions Overall Control Shippers have realized the words Free Freight Raises a RED FLAG!
15 4 Areas of Focus to Meet Inbound Freight Goals 3. Visibility and System Control Visibility allows for: Control of inventory movements Visibility into Freight data But. There must be an information system to manage the complex processes, such as a Transportation Management System or TMS
16 4 Areas of Focus to Meet Inbound Freight Goals 4. Vendor Relationships Trust allows for collaboration and transparent communication, giving you the keys to success. Benefits of trusted relationships: Reduced inventory & safety stock Improved warehouse operating costs Enhanced customer service
17 TMS for Inbound Freight Automation Transportation Management System Make sure your TMS that is: Carrier neutral Encompasses the entire shipping ecosystem Has a Web-services architecture Is permission based Has a powerful, flexible rules engine
18 TMS for Inbound Freight Automation 5 Must Have Automation Features in a TMS
19 TMS for Inbound Freight Automation 1. Real Time Freight Rates: No more theoretical savings, but hard ROI based on live, vendor neutral access to realtime market rates
20 Gain Control Using a TMS that: Has a rules engine, based on optimized plans and routing guides Is flexible to accommodate custom business rules Allows for user control Usability matches logistics expertise TMS for Inbound Freight Automation 2. Organizational Control
21 TMS for Inbound Freight Automation 3. Visibility and Data Analysis Reporting For true shipment-level visibility and reporting, a TMS must have: Carrier neutral, mode-agnostic data repository. Up to date trends and patterns Forecast supply and demand of carriers to make real-time decisions based on actual data rather than guesswork.
22 TMS for Inbound Freight Automation 4. Speed and Scalable A TMS Should Support: Rapid Growth Ease of use with little training Practical & delivers results immediately Work as effectively at 2 inbound shipments per day or 100 Provides long term sustainable ROI
23 TMS for Inbound Freight Automation 5. Dedicated Technology and Up to Date Web Standards A Cost Effective TMS Must: Be based on open standards & SOA architecture to allow for integration Allow for rapid deployment (typically web-based/cloud) Dedicated technology team who develops freight technology.
24 Technology + Expert Logistics = Success! Effective Inbound Logistics is Truly a Combination of Technology and Expert Service TMS solutions allow All in the inbound freight ecosystem to be managed. Control Costs Gain visibility Increasing control over such decisions as carrier choice, routing, and price Ensure compliance by suppliers and employees to the routing guide
25 Technology + Expert Logistics = Success! Inbound Logistics & Integrated Freight Managed Services Integrated Freight Management Services alongside a TMS: Address the problem of supplier compliance Integration of players into the new program ecosystem guided by expert logisticians Allows for carrier relations management and upkeep in the TMS Easy exchange of information about each shipment for better freight accounting, claims, and risk compliance
26 Technology + Expert Logistics = Success! Best Practices To Expect for Inbound Logistics from a Freight Management Services Provider In order to effectively manage all aspects of inbound logistics, a managed service must be able to: Provide the ability to track and trace shipments for multiple customer roles Process shipment for all modes of transport Demonstrate logistics expertise in carrier relationships Manage shipment scheduling, processing and execution Manage contract negotiation and renewals Monitor and enforce business rules Seek dynamic, vendor-neutral freight bidding for transportation, as needed Provide comprehensive real-time reporting Understand and manage reverse logistics Provide full freight claims management Provide freight accounting services
27 Cerasis: Your Inbound Freight Management Partner Who is Cerasis? Founded in 1997 Third Party Logistics Provider Specializing in Freight Management State-of-the-Art Cloud Based TMS and Mobile TMS Application (Android, Apple) Comprehensive Freight Management Services Including, but not limited to: Analysis and Audit of Existing Shipping Practices and Carrier Rates Carrier Rate/Rules Negotiations and Bidding Services Contract Management Inbound Routing and Compliance Program Volume/Spot Quotes, Truckload Routing (dedicated lanes & brokering) Invoice Auditing and Consolidated Weekly Billing Claims Processing and Maintenance Shipper Compliance Auditing Solutions Custom Tailored to Meet Your Needs
28 LTL North America FTL Intermodal Cerasis: Your Inbound Freight Management Partner Modes Supported Specialized Dedicated Transportation Services FedEx Small Package
29 Cerasis: Your Inbound Freight Management Partner Cerasis Inbound Freight Solutions Your team needs more time to focus on core competencies. Solution: Cerasis can give your team back valuable time by handling some of the time consuming duties associated with freight operations including routing inbound shipments, scheduling pickups, shopping for volume/spot quotes, re-routing shipments in transit, auditing invoices, resolving invoice discrepancies, and processing claims. Suppliers don t always comply with our routing guide. Solution: Cerasis Freight Desk will route your inbound shipments ensuring they are routed to your specifications at the best possible rates. There may be situations in which you would prefer to route inbound shipments yourself and with our system, you have that option. Need ability to monitor compliance for all shipping locations. Solution: Our least cost compliance feature requires shippers to input a reason when they do not ship via the least cost carrier. Our Least Cost Compliance Report sorts non-compliant shipments by reason and displays lost savings data.
30 Cerasis: Your Inbound Freight Management Partner Inbound Freight Solutions (Cont.) Need for standardization of procedures. Solution: Cerasis will partner with you to implement a process designed to get all of your locations on the same page; following the same procedures. Need more visibility and control over all shipping operations for all locations. Solution: Cerasis TMS with organization views. No easy way to determine impact of freight costs on customer profitability. Solution: Freight expenses can be sorted by customer and exported into Excel for analysis. Auditing freight bills and researching variances is a drain on resources. Solution: Cerasis will audit your freight bills using a three step validation process that enables us to resolve carrier errors before you are billed and obtain supporting documentation for invoices that have been correctly adjusted. You will receive a pre/post audited weekly consolidated invoice from Cerasis.
31 Cerasis: Your Inbound Freight Management Partner Inbound Freight Solutions (Cont.) Accounting has to spend time allocating freight costs to G/L accounts. Solution: G/L codes will be loaded into system and assigned to shipments at time of processing. These codes will follow the shipment all the way through invoicing and reports can be sorted by these codes and exported into Excel for further analysis. Shipment handling expenses not being recouped. Solution: Cerasis incentive feature allows you to add a handling charge to the freight cost that remains transparent to your customer. Buyers need a quick way to estimate freight charges for raw materials and supplies purchases and sales staff needs a quick way to estimate freight charges for customer bids. Solution: Quick quote feature in Cerasis TMS. Customers have to contact sales or shipping staff for delivery updates, tracking info, and POD s. Solution: Customers will receive automatic shipment notification s with tracking links.
32 Cerasis: Your Inbound Freight Management Partner Cerasis TMS = The Cerasis Rater True lane based rating engine. Shipments rated and presented on screen in least cost order with carrier transit and limit of liability information. Shipment control panel to expedite shipment processing and auto-schedule pickups. Guaranteed shipment costs allow you to bill product and freight costs simultaneously without waiting for the freight bill! Quick quote feature for sales and purchasing personnel. Complete visibility of all shipment activity. Inbound receiving report to assist with planning and scheduling. Powerful tools and reports to help you manage trends and ensure compliance. Organization views to facilitate management of all shipping locations. Online invoice center provides electronic invoice access, adjustment requests, and payment options enabling you to go paperless. Customer satisfaction tools including automatic shipment notifications with tracking links.
33 Cerasis: Your Inbound Freight Management Partner Cerasis Process Approach Customize a solution designed to meet your specific transportation needs Execute a partnership agreement Negotiate rates with carriers on your behalf Conduct a commodity review Collaborate with your management team to implement our custom solution Follow up to ensure your staff is fully trained and compliant Provide you with outstanding service and support on an ongoing basis Conduct quarterly account review meetings
34 Cerasis: Your Inbound Freight Management Partner Cerasis Team An Exceptional Group of Experienced Freight Professionals Striving to Exceed your Expectations Dedicated Customer Service Representative Freight Desk Claims Specialist Carrier Relations Group Implementation Team
35 Cerasis: Your Inbound Freight Management Partner Cerasis Technology In-House IT Department Integration XML Web Services Custom Reports
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