Freight Operations Seven Paths to a Working Capital Goldmine
New report from J.P. Morgan, authored by Bernie Hart, examines the valuable role visibility and data quality play within the realm of global freight transportation processes. It outlines seven ways an organization can mine global freight spend and improve cross-functional business decisions.
Effective management of freight services challenges most global companies --
particularly those that have not embraced automation. Advances in technology have brought visibility into global transportation freight spend. When applied to a company’s freight spend, the combination of visibility and data quality can uncover a hidden gold mine.
• Time for Visibility
In a world where technology has streamlined mundane processes, an organization
that continues to manually handle the paper-intensive procurement and payment of
freight services can experience a negative impact to their bottom line. As it’s difficult
to track multiple carriers in multiple countries with varying tariff schedules and
currencies, inaccurate service rates and duplicate invoices abound – testing supplier relationships and increasing the need to conduct verification and audits with
numerous logistics providers.
Companies managing freight manually should note that times have changed, and
that technological changes related to automating paper flows have yielded another
benefit -- visibility into global transportation freight spend.
With the help of the new Trade technology, a company’s transportation operation
can collect information that allows formal root cause analysis and the development
of decision support data. Quality data helps companies identify problems within their
internal operations and pare their supply chain, curtailing costs while providing
companies with an opportunity to shorten their billing cycle from months to weeks.
With the right information at hand, companies can implement a closed-loop process
that drives lower negotiated rates, improves service, and realizes significant freight
Contact J.P.Morgan at:
John T. Murray III
Vice President, Treasury Services Media Relations
45025 Aviation Dr., Suite 100 / Dulles, VA 20166
571-934-2808 / [email protected]