From Hidden Costs to Full Control with Automated Freight Cost Management
Elektroskandia has joined the ranks of Elon Group, Ellos Group, and Vätterledens Logistik in gaining full control over freight costs. By digitizing and automating time-consuming manual processes with IMI’s cloud-based, scalable solution, FCM – Freight Cost Management – tasks that used to take hours can now be done with a single click. Freight economics are optimized through automatic invoice checks, and advanced algorithms and machine learning help identify and eliminate unprofitable processes and quality issues.
Managing freight costs is a tough challenge for many companies. Manual processes often make it difficult to get a clear picture of transport costs. At the same time, these costs can be one of the largest expense items. Lack of control and inefficient processes can lead to hidden costs. How large are our freight costs, really? How can we achieve cost savings without a complete overview of all freight-related elements? Let us explain how IMI FCM, our 100% cloud-based and user-friendly solution, can address these challenges!
A Large Potential for Savings
The savings potential with IMI’s FCM solution is significant. For example, Elon Group estimates that the system reduces their freight costs by 3–5%. With over 900 stores across the Nordics, logistics and services are one of three focus areas in Elon’s omnichannel strategy. This makes FCM an essential tool for driving their strategy. According to Elon, the control provided by IMI FCM “puts direct money into the cash register” and acts as both a financial and a logistics system.
FCM’s ability to automate key processes within freight management not only generates significant financial benefits but also provides better insights into a complex area and supports driving changes.
Key Processes That Are Automated
One such process is invoice control, which is fully supported by the Freight Invoice Management module in FCM. It gathers data from business, TMS, and invoicing systems for analysis. Trends and discrepancies are identified, highlighting opportunities for improvement in both transport agreements and internal operations.
Another time-consuming process is pricing, such as determining the best carrier for a shipment. This can be difficult to assess manually, often leading to random choices. With FCM’s Price Query function, users can either view available options or receive carrier suggestions based on pre-set rules.
Managing multiple freight agreements can also be complex. Freight Agreement Control in FCM simplifies the registration, tracking, and pricing process, automatically updating carriers’ price adjustments. Additionally, freight cost estimation for a specific month becomes straightforward, thanks to the “freight accruals” function, which provides a complete overview of all costs, including pending and invoiced shipments.
Freight cost allocation is automated at the shipment level, reducing the number of invoices requiring manual handling. This is a win-win feature for both shippers and carriers!
Comprehensive Financial Insights (KPIs)
For financial and logistics managers, access to key performance indicators (KPIs) is crucial for optimizing freight routines. IMI FCM addresses this need by collecting data from all carriers and integrated systems, presenting it as reports and KPIs. These insights highlight improvement areas and enable internal efficiency gains, ensuring the right transport service at the right price and quality.
Climate Reporting for a Greener Future
IMI FCM doesn’t just give you control over freight costs; it also supports climate initiatives. As the transport sector undergoes a green transition, achieving sustainability goals requires action from all parties, including businesses ordering transports.
With FCM’s climate reporting feature, you get a complete overview of emissions data, even if your carrier doesn’t provide environmental reports. CO2 and NOx emissions are visualized, with recommendations for actions to support the green transition. Trends can be monitored to evaluate the impact of implemented measures.
Ready for Better Freight Management?
Do you need better control of your freight costs? Are your current routines too time-consuming? Are there quality issues and areas for improvement? Are you a 3PL/4PL company looking to grow without adding more administrative staff?
Contact us at IMI to learn more about all the possibilities with IMI FCM!
