Range of Projected Savings for ABC Distributors

Range of Projected Savings for Beige Bauble Equipment (Year One of TLM Suite): 7.1% - 10.1% ATX

Projected Total Cost of TLM's AccuFreight Suite: 1.15% ATX

Beige Bauble Equipment - Quantifying ROI

November 2007

The evolving story of Beige Bauble Equipment (BBE) demonstrates five ways in which an investment in Trans-Lucent Market's (TLM) systems can easily provide payback within 12 months or less.

ROI #1 - Auditing the Freight Audit Function:
BBE began negotiations with TLM when the company decided it was not happy with the performance of its current freight audit firm. As part of these negotiations, BBE provided TLM with a sampling of its freight data to be analyzed through TLM's Freight Intelligence System (FIS). The results clearly showed that BBE's freight auditor was identifying and correcting only a fraction of the existent errors and duplicate bills. Therefore, prior to BBE even becoming a client, TLM saved this company literally thousands in both lost error corrections and freight audit double-billing charges.
Annual Estimated Savings (lost errors / double-billing): ~ 0.35% of ATX
ROI #2 - Tightening Up the Freight Audit Function:
TLM is processing between 200 and 250 invoices per day from this client, originating from over 100 different carriers. Errors have been found in more than 50% of the invoices processed. The majority of errors relate to erroneous fuel surcharges and "new" accessorial charges added to billing without being negotiated and contracted with BBE. Based on the information gathered in these first four months, TLM concludes that it is saving BBE approximately $8,900 per week in error correction.
Annual Estimated Savings (Freight Billing Error Correction): ~ 1.75% of ATX
ROI #3 - Carrier and DC Performance Analysis:
TLM's AccuFreight Freight Intelligence System (FIS) allows BBE to analyze and report on a wide range of performance issues, most specifically carrier financial performance and the ability of distribution centres to follow identified business rules. Early estimates suggest that improved carrier selection and higher business rule compliance produces savings in the range of 2-4% ATX per year.
Annual Estimated Savings (Performance Analysis through FIS): 2-4% of ATX
ROI #4 - Controlling the Payment Process:
TLM's AccuFreight Accounts Payable (AP) function provides BBE full control over payment processes. This allows BBE to capture previously untapped savings in early bill payments to carriers as well as limiting late payment charges on overdue bills. There are additional savings to be found in batching payments more efficiently. Early estimates suggest that these improved payment processes are capturing savings close to 1% ATX per year.
Annual Estimated Savings (Controlled Payment Processes): ~ 1% of ATX
ROI #5 - Improved Freight Negotiations/Selection:
TLM's AccFreight Rate Manager (ARM) tool allows each individual distribution centre to instantly find the "best rate" carriers, lane-by-lane. AccuFreight Rate Manager (ARM) also acts as BBE's internal rate audit engine, quickly presenting the negotiated rate to be compared with the actual rate billed. Having instant access to this information – rather than having to search through multiple spreadsheets, faxes and e-mails – adds additional leverage to carrier negotiations on future rates while also ensuring that the best rate selection is always immediately available.
Annual Estimated Savings (Immediate Access to Best Freight Rates): ~2-3% of ATX

Range of Projected Savings for Beige Bauble Equipment (Year One of TLM Suite):
7.1% - 10.1% ATX
Projected Total Cost of TLM Suite (Year One):
1.15% ATX