A SUSTAINABLE FREIGHT SOLUTION
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- Marshall Harrington
- 6 years ago
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2 OUR PRINCIPLES A SUSTAINABLE FREIGHT SOLUTION We believe in free market principles. By combining these principles with our real-time freight technology; carrier service, freight costs and process efficiency are drastically improved. We have innovated the only freight technology to maintain a reduction of these variable costs by an average of 45%. 1
3 REMOVAL OF COSTS SHIPPERS CARRIERS The following are costs incurred by both shippers and carriers reflected in every freight bill. By moving freight transactions to real-time, carrier capacity is drastically improved and over 45% in cost reduction can be realized. Our removal of these processes, and thereby costs, is a testament to what innovation in a free market environment can do. Broker Fees 18% Brokers have served the industry for many years. Locating, qualifying, relaying communication, and facilitating payment to the carriers are currently costing each shipment an average of 18%. Uniting pre-qualified carriers onto one technology platform that handles their entire work load removes the need for a broker. Auditing & Fraud 6% Line haul, fuel surcharge and accessorial fraud create the need for auditing in both brokered and carrier direct billing. Through real time accessorial approval and up front rate agreements, all potential for fraud is removed. Accounts Payable Process 2% From invoice receipt to checks in the mail, on average, adds 9.7 days to the processing timeline. Through automation all data entry is removed and replaced with one click to release payment to your carrier. Source: Ernst & Young What is the True Cost of Processing a Freight Bill? Aberdeen Group Invoicing and Workflow 2
4 REMOVAL OF COSTS SHIPPERS CARRIERS We have identified two additional factors directly affecting freight pricing. These costs are estimated based on internal data and differ based on commodity and location. Visual Competition 8%* Allowing carriers to compete and to see their competitors quotes helps sustain a competitive and free market. The lack of this environment, we estimate, is adding 8% to the cost of shipments Freight Desirability 7%* Paying the carrier in real time incentivizes carries to take your freight over a competitors freight where credit is extended. The lack of this simple action, we estimate, is adding 7% to the cost of shipments. * Unknown factor estimated using GBT network data. 3
5 REMOVAL OF COSTS SHIPPERS CARRIERS The trucking industry is highly fractured. Until now, small carriers operating 85% of the trucks on the road could only access companies through a freight broker. These small carriers bear substantial costs in financing and processing due to delayed payment. Factoring 3-7% Carriers use factoring as a pay-day loan given to the carrier on outstanding invoices to cover operational costs. By paying carriers upon delivery, we solve their cash flow problems and remove the grip factoring companies have on small carriers. Billing & Invoicing 3% Invoice creation, transmission and discrepancy handling are only a few of the costly procedures in the A/R process. Automated invoicing and escrow technology removes the carrier s need for invoicing, auditing, accessorial tracking and paperwork or processing of any kind. Extended Credit 1.5% External credit is extended to assist in business costs while receivables are being collected. By paying carriers upon delivery, carriers are able to cover operational costs without additional fees. Bad Debt 1-3% Collections is the single biggest internal administrative cost incurred by the carrier. Unrecoverable receivables have an obvious bottom line effect. By escrowing the carrier s payment prior to transport, carriers avoid the risk of bad debt entirely. Source: Ernst & Young What is the True Cost of Processing a Freight Bill? American Shipper Survey: September 2014 Benchmark Report: The Check Is in the Mail - American Shipper s Transportation Invoice-Processing & Payment Study 4
6 REMOVAL OF COSTS SHIPPERS CARRIERS Underlying factors keep small carriers from becoming more competitive in the marketplace. By utilization of the Go By Truck network small carriers not only reduce embedded operating costs but can now compete with services and technology offered by large trucking companies. Return On Investment Small and mid-sized carriers have the largest operating ratios in the industry ranging from 94% to 95%. In today s marketplace, operating on these margins requires multiple outside financial and operational service providers. Dispatching & Tracking Small carriers commonly outsource dispatching services to help source freight, reduce calls and handle back-end paperwork. Tracking services are commonly too costly to implement. By collecting in-depth carrier and lane data, shipment procurement and communication become simple for the carrier. Locating services are provided at no charge and are accessible through both our mobile and traditional web apps. A 45% REDUCTION By reducing the industry s embedded costs and introducing a free market approach, Go By Truck has removed all of these embedded costs for the shipper and carrier while decreasing the human computation by an estimated ten times. Our sustainable solution secures a preferred freight presence while providing both parties comprehensive benefits. 5
7 IMMEDIATE BENEFITS WHAT IMMEDIATE BENEFITS WILL YOU SEE? O1 O2 O3 LOWER FREIGHT COSTS Companies are currently seeing freight lane savings from 10% to 40% and even more in competitive freight lanes. Companies traditionally using intermodal carriers are also seeing significant savings in certain markets. A RELIABLE CARRIER NETWORK By utilizing Go By Truck s thousands of daily verified network carriers, companies are securing freight lane partners to provide repetitive, live quotes and building quality relationships. REDUCED MAN-POWER Through Go By Truck s revolutionary freight technology, back-office work is reduced to a minimum. Carrier procurement & payments, accessorial requests, POD delivery, arbitration, auditing and invoicing are now automated. Support is always available at no additional cost. Freight managers can now better manage freight budgets and on-time schedules rather than preform laborious tasks. 6
8 HOW WE DO IT Through the Go By Truck platform and technology, companies experience a proven approach to improved relationships and rate reduction. By using the following methods a customized, sustainable solution is created to manage your freight regardless of company size. LANE BUILDING With your lane specifics, Go By Truck will begin building reliable carrier relationships. Through automated daily sourcing we will continue to build your capacity and further drive down pricing. SHIPPING PARTNERS Once a baseline of reliable carriers have been established in your lanes, we will begin to source your shipping partners. Through these partners, carriers are able to better calculate their return and reduce head haul rates. LIVE EQUIPMENT QUOTES Unlike brokers, who give you a rate before identifying a carrier, Go By Truck will only present you with quotes from live equipment able to transport on your desired dates with proper equipment and qualifications. BACKHAUL RATES Our carriers predominately utilize the Go By Truck network to find backhaul freight. Backhaul savings are hidden or absorbed by freight brokers denying shippers true market savings. With Go By Truck s 100% transparency, backhaul savings are always passed on to our customers. INCREASED CARRIER ACCESS By allowing small carriers making up over 85% of the industry to access the shipper directly, capacity and thereby rates are improved via Go By Truck s quoting engine. NETWORK COSTS Network access is free to both shippers and carriers. Carriers are charged a network fee of 10% on each freight transaction which is 100% transparent to the carrier at the point of quote submission. 7
9 SIMPLE, SEC URE & SUSTAI NABLE Go By Truck s clean and simple interface, no subscription fees and anytime tracking all help Go By Truck provide the opportunity for shippers and carriers to work directly at greatly reduced cost. Adapting to the GBT system is simple and integration is easy. You can communicate with Go By Truck however you prefer; by , telephone or EDI. With Go By Truck s one solution technology, every freight transaction is managed using your own GBT bank. This allows for 100% transparency and provides a seamless method of payments. 8
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