Implementing Freight Pay and Audit for Improved Accuracy

The VP of sourcing and logistics at a diversified chemical company was eager to work with Gartner to make transformational changes within his transformation function. They identified implementing a new freight pay and audit (FP&A) system to outsource freight invoice payment that was currently being done internally. Gartner supported them in selecting the right vendor to implement the transformation and eliminated $84,000 in extra fees on an existing tool which would be rendered redundant.

Most critical priority

The client wanted to implement an FP&A system to outsource freight invoice payment, and also introduce an audit process to ensure accuracy of freight bills and avoid being overcharged.

How Gartner helped

Through multiple rounds of interactions with our Supply Chain Leadership Partner (SCLP) and experts to evaluate pricing, value and service terms across various FP&A vendors, it became evident that there was some overlap with an existing TMS tool already in place that had some of this freight payment functionality. With support from Gartner, they renegotiated the fees with the existing TMS application given that they would no longer need the freight pay function.

Business impact

With Gartner for Supply Chain Leaders, the client:

  • Evaluated pricing and terms of FP&A vendors to choose the technology which was best suited to their business.
  • Identified capabilities in existing tools which would be rendered obsolete once new processes are in place
  • Renegotiated terms with existing vendors to achieve a reduction of $84,000 in annual fees.