LTL Freight Audit Services
Are you consistently shipping large quantities of items? If not, you may be missing out on the lowest shipping rates and the best service times that larger freight clients enjoy. To solve this, PMAC created a buying consortium and transportation management process that delivers significantly better rates than you could achieve on your own. Even better, there are no up-front costs. In fact, the PMAC consortium leverages over $100 million in shipping volume with carriers each year.
The transportation management process helps first by securing pricing that is often up to 20% lower than the market average. Based on your specific needs, you can then decide online whether to prioritize your shipment by lowest cost or fastest service. As a result, the system identifies the optimal carrier for each delivery. Furthermore, payments can be consolidated into one weekly invoice, and PMAC’s auditing process ensures you receive credits for rating errors, duplicate payments, and overcharges.
Over the course of each shipment, you also build a proprietary database of shipping costs. This information allows you to analyze opportunities for future savings and exercise greater control over your logistics. After using the consortium rates and transportation management process for just 60 days, most clients realize between 8% and 15% savings. Most importantly, they achieve these results without sacrificing service quality or changing day-to-day operations.
PMAC’s Four-Step Process
1. Negotiated Rates Means Discounted Pricing
Transportation is a commodity, and our consortium purchasing power allows PMAC to negotiate prices that our clients typically cannot obtain on their own. We contract with top-tier carriers.
Results: Save 10%-20% lower than market price. Maintain or improve customer service.
2. Optimize Carrier Selection, Transit Times, and Pricing
PMAC’s web Transportation Rater optimizes carrier selection, transit times, and pricing. The easy-to-use software allows clients to make the best shipping decisions and prioritizes low-cost or best service.
Results: Balances your customers’ needs while providing cost reductions. Simplifies the process and improves productivity by displaying all the alternatives on one site instead of many carrier sites.
3. Freight Payment Consolidated into One Weekly Invoice
PMAC’s 50-point, in-depth pre-payment audit captures information from actual carrier invoices, original bills of lading, and delivery receipts; corrects carrier errors; and processes and consolidates all freight bills into one easy-to-read weekly invoice for payment. In addition, this process creates a valuable proprietary database to gain control over freight costs.
Results: Saves 4%-8% by eliminating rating errors, duplicate payments, and overcharges. Improves productivity by capturing general ledger requirements and cost center allocations.
4. Measurement and Evaluation Reporting to Report on Transportation Usage and Analyze Future Savings Opportunities
The final stage of the four-step process delivers actionable management reports that go beyond typical accounting reports, providing a real-time overview of transportation information specific to your operations. Many companies believe if you can measure a cost, you can control it.
Results: Provides timely, accurate transportation performance reports. Builds a database that can ensure compliance with transportation policies and highlight opportunities for future savings.
PMAC’s Wide Range of Services
- Web Transportation Management Software (TMS)
- LTL Audit and Recovery
- Inbound Vendor Routing and Compliance
- International Shipment Arrangements and Processing
- Integration to ERP or Order Management Systems
- Port Deconsolidation and Assembly
- Charge-back Avoidance
- Spend Evaluation
- Freight Payment
- Return Management
- Shipment Visibility
- Truckload Shipments
- Air and Expedited Shipments
- Financial Reporting
- LTL Carrier Rate Negotiation
Benefits of Using Consortium Negotiation Leverage and PMAC’s Four-Step Transportation Management Process:
Strategic
- Provides an opportunity to significantly reduce transportation costs by 8% and 15%
- Reduces the erosion of product profit margins
- Allows for a shift of resources to more strategic activities
- Opportunity to outsource a non-core competency function
Tactical
- Volume leverage replaces negotiation skills as the strategy to manage freight costs
- Provides a process for the reduction and continuous improvement of a primary expense
- Continuous timely measure of performance means quicker corrections
- Transportation management system optimizes best cost and service time decisions
