Ellos automates freight invoice management and gains deeper insight into profitability by product and market
The challenge
Manual processes and lack of detailed visibility
Before implementing IMI’s system, Ellos managed freight cost follow-up almost entirely manually. The work was person-dependent and there was no way to drill down into the details when costs stood out.
- Follow-up was done only at account and project level – not by product, market, or transport type
- Difficult to trace deviations and understand what was driving costs
- Manual Excel-based handling with high dependency on individuals
- A growing home assortment with larger products introduced more transport types and more complex pricing structures
- Expansion into new markets with entirely different cost structures made budgeting and monthly accruals more difficult
“We were working at a very, very high level and we had great difficulty finding deviations and understanding what they were caused by.” – Josefine Motten Wernerby, Operations Controlling Manager, Ellos
The solution
Automation and flexibility with IMI's freight cost management
The need for a dedicated system arose when Ellos realised that neither manual processes nor in-house Excel solutions were keeping up with growth. IMI’s system turned out not only to solve the initial problem – it opened the door to a broader automation journey.
The implementation and collaboration with IMI has been characterised by flexibility and a genuine partnership, with the system adapted to Ellos’ reality while providing clear guidance on best practices.
“The implementation has worked very well – we experience a strong partnership and a good balance between flexibility and getting help with how to best work in the system.”
The result
Deeper business insight and more strategic pricing
One of the most important impacts of IMI’s system is an entirely new ability to monitor and understand the freight net at a detailed level. Ellos can now analyse profitability by product category, geography, and specific product – insights that directly influence how they run the business.
- Complete picture of the freight net by product category and geographic area
- Ability to identify products that are not profitable to ship to specific markets
- Data to support decisions about unprofitable products in the assortment
- More strategic and fact-based pricing of freight towards customers
- The controller and distribution manager can act more proactively and get closer to the business
“We can now say whether a specific product is actually profitable to ship to a specific country. It has given us a completely different level of visibility within the company.” – Nina Littorin, Distribution Manager, Ellos
A reliable foundation to lean on with IMI’s freight cost management system
The improvements are visible both in the administrative flow and in analytical capability. The finance and distribution team spends significantly less time on manual invoice handling and can instead focus on drawing conclusions, explaining deviations, and setting better prices.
Next steps – Further automation and deeper accrual management
Ellos sees clear opportunities to continue growing with IMI’s system. The focus areas for the next phase:
- Utilise the system’s built-in functionality for monthly freight cost accruals directly in the system
- Further automation of the financial closing process with system support
Some of the brands relying on IMI
IMI Supply Chain Solutions
