Same carriers, same contracts: three results

Results from a freight system are easy to claim and hard to check, so here are three in enough detail to judge, each a different kind of gain. Names are left out. In all three, the carriers kept working the way they already did.

At a shipper with several sites, each site's coordinators chose their own carriers and set their own rates. Nobody had done anything wrong. That is simply what happens when nothing holds the routing guide in place: the person covering the load uses the carrier they trust at the rate they can get today.

We put the system and Novari Desk to work against the customer's own contract rates, and changed nothing about the carrier relationships. Same carriers, same contracts, with the routing guide followed in order on every load. The annual freight saving from that alone landed well into six figures.

Here the operation moved about a thousand shipments a month with no accounts payable process for freight and nobody assigned to it. It paid what its ERP said each load should cost, before the carrier had invoiced, and nothing checked that payment against what the carrier actually billed.

In under sixty days we moved their carriers to net 30 terms and put a freight audit in place. The customer added no one to the team and bought no technology of their own, and the carriers adopted nothing new. Paying on a matched invoice at 30 days, instead of on the ERP's estimate ahead of the bill, put more than $1 million of working capital back on the balance sheet, and that is before counting the AP work their own team did not have to take on.

This one came out of the data rather than the process. One plant shipping about 200 loads a month was carrying more spot exposure than its contract program suggested, and Novari Core showed which lanes it sat on. The customer sourced new contract carriers for those lanes. In the first month with the new carrier on board, base rate expense came down $20,000.

Each result came from the customer's own side of the commitment: their routing guide, their payment terms, their lane data. The carriers kept working by email, as they already did, and every result showed up within sixty days. In fact, that is why they arrived so quickly: there was no counterparty integration project to wait on.

If one of these sounds like your operation, book a call and we will tell you which one we would look at first.