Citi® Integrated Freight Processing for the U.S. GovernmentA powerful e-solution for managing and paying transportation-related expenses

2

Finally… a better way to receive, audit and pay freight

invoices that improves efficiency, costs and

financial controls and also meets the unique

demands of the U.S. government

3

It’s no secret that managing transportation payments,

even when you have a reliable system for managing

shipping activities themselves, can be prone to costly

errors, inefficiencies and risks… unless you have an

equally reliable and integrated solution for managing

shipping invoices and payments, that is.

Citi® Integrated Freight Processing is that solution.

Our U.S. government-approved and -deployed application

streamlines the entire audit, approval and payment

process for freight invoices, replacing cumbersome and

costly manual activities with more reliable and efficient

electronic ones.

Citi® Integrated Freight Processing.

A web-based solution that

automates transportation-related

invoices and payments… and

can trim up to 10% off your

transportation costs.

4

Citi Integrated Freight Processing, for instance, helps

mitigate the payment of fraudulent or duplicate invoices

and avoids errors associated with allocating expenses to

the wrong cost centers.

In fact, studies show that automating manual processes

can save as much as $5 per invoice and can trim up to

10 percent off overall transportation costs.

Enhance operational efficiency, improve financial controls

Citi Integrated Freight Processing consolidates multiple

manual processes into a single automated stream,

creating a host of operational benefits that include:

• Elimination of man-hours spent handling paperwork

• Elimination of hard costs associated with postage,

check stock and late charges

• Ability to electronically capture and store all invoice

images and data in one location

• Real-time visibility into invoice, approval and payment

status for all parties to a transaction

• Systematic and standardized prepayment audit

procedures that ensure invoices meet payment

criteria before they are posted, and that disputes

are resolved quickly

• Automated, faster payment of invoices once audits

are passed

• Creation of a full audit trail to ensure compliance with

policies and regulatory requirements

• Standardization of electronic file and data formats

and automated postings of expense allocations to

your accounting systems, down to line items

• Around-the-clock access to a centralized online

repository of transaction data and analytics

“Our clients, public sector and private alike, are demanding that we help

them digitize paper flows and leverage business intelligence to reap

operational efficiencies and push down cost curves.”

Kevin FitzgeraldHead of Public Sector, North AmericaCiti Global Transaction Services

5

Eliminate manual activities and audit findings, automate account coding

No matter how simple or complex your freight and

shipping activities are, Citi Integrated Freight

Processing can consolidate, expedite and simplify

your payment activities.

Here’s how it works:

• Transportation service providers submit invoices

electronically to Citi Integrated Freight Processing

• Invoices are matched with bills of lading and

prepayment audits are conducted based on your

agency’s specific audit rules

• The system automatically conducts prepayment audits

that match invoices with bills of lading or purchase

orders and that are based on your agency’s specific

audit rules and specified data fields

• Invoices that pass prepayment audits are paid

automatically by Citi, with carriers receiving one

payment daily for all of their approved invoices

• Invoices that do not meet prepayment criteria are

flagged as exceptions and you are notified

immediately so that you can resolve disputes and

negotiate terms with your providers online

• Each month you receive a single monthly bill that

consolidates all of your shipping invoices

• You and your carriers can log on to the system to

run order, invoice and payment reports

Kevin FitzgeraldHead of Public Sector, North AmericaCiti Global Transaction Services

Audit Post Present Pay

• Shippers submit bills of lading

• Carriers submit invoices electronically to the system

• The system performs audits, matching key fields from bills of lading to carriers’ invoices

• Expenses are posted to your general ledger based on your chart of accounts and automated account coding rules

• Invoices are paid automatically via business rules, or are presented for your approval. All invoice resolution is done online and you have the ability to route invoices to multiple approvers

• Citi pays freight carriers daily via ACH for all of their approved invoices

• Your invoices are aggregated into one monthly invoice from Citi

View and Analyze

• All parties have visibility into invoice, approval and payment status

• Analytic and reporting tools provide you with intelligence on transportation spend and trends

Citi Integrated Freight Processing provides a single platform for simplifying and automating the entire audit, approval, payment and expense allocation process, end-to-end.

6

Gain more control over, and insight into, your freight

and transportation expenses.

7

Citi Integrated Freight Processing offers you a one-stop

solution and single platform for reducing margins of

error on all your transportation invoices and payments.

It also ensures timely, efficient settlement of invoices,

allowing you to maximize vendor discounts and reduce

the risk of late charges and post-audit fees.

In addition, the system enables all parties to a

transaction to access invoice, approval and payment

status with just a few keystrokes — a win-win for you

and your transportation service providers.

A single window and one invoice for thousands of transportation providers

More than 10,000 transportation service providers

conduct business over the Citi Integrated Freight

Processing platform, and new carriers can readily be

added, ensuring standardized, centralized and easily

auditable invoice and payments data for all of your

providers — no matter where you do business with them.

Citi, which operates one of the most comprehensive

domestic and cross-border payment networks in the

world, provides centralized processing for all your

invoices and payments and fast, efficient electronic

disbursements to 180 countries in over 130 currencies.

Each month, you receive just one invoice for all your

transportation expenses, for all carriers, modes of

transportation and types of shipments, including

household goods. Plus, you gain around-the-clock

access to real-time payment details and general ledger

assignments for all your transactions.

8

Streamline multiple work flows with one powerful

end-to-end solution.

9

With Citi Integrated Freight Processing, everything from

prepayment audits to expense allocations takes place

online and automatically, which dramatically reduces

the need for intervention from your personnel and

simplifies workflows.

Zero cost to procure, hassle-free implementation

The Citi Integrated Freight Processing solution not only

eliminates manual processes, lowers processing costs

and increases control over cash flows, it can be procured

free of charge and can typically be implemented in

60 to 90 days.

Citi, as the prime transportation payments provider

for the General Services Administration Office of

Transportation Management through PayPort Express

and processor of nearly 90 percent of the U.S.

government’s cross-border payments, is intimately

familiar with the government’s operating procedures,

guidelines and various technology systems.

Consequently, our solution is compliant with all federal

data security systems and meets, for example, all of the

GSA’s pre- and post-audit requirements. GSA Audit

considers Citi Integrated Freight Processing an approved

system for pre-audit.

Business intelligence that drives supply chain optimization and cost savings

Citi Integrated Freight Processing is a commercial-grade,

off-the-shelf solution that speeds and improves the

entire freight pay and audit life cycle. What’s more, it

generates actionable logistics and expense data so that

you can gain even more control over your transportation

budgets and forecasts.

Citi Integrated Freight Processing puts at your fingertips

a wealth of business intelligence to help you achieve:

• Supply chain network optimization

• Procurement efficiencies

• Load consolidations

• Cost savings

• Transportation service provider management

In addition, our solution is easy to implement, can be

customized to meet your organization’s specific needs

and integrates with existing transportation management

and enterprise resource planning systems.

10

Citi. Providing a powerful combination of

government experience, technological know-how

and global transaction management capabilities.

11

Citi understands the demands that government agencies

face on a daily basis to deliver their services more

efficiently and cost effectively. What’s more, we have a

proven track record of delivering services and insights

to federal operations around the world that cut costs,

add value and deliver results.

Today, for example, we are a leading transaction

services provider to the U.S. Treasury Department,

the Department of State and the General Services

Administration. In fact, we handle 90 percent of the

federal government’s cross-border payments, supporting

50 agencies in 100 countries. We also are the primary

freight invoicing and payment services provider

for the GSA Office of Transportation Management.

The GSA program processes over 100,000 freight

and household goods transactions and 20 million

small-parcel transactions, providing federal agencies

with access to 1,800 transportation service providers.

Receive dedicated service and support

From preimplementation planning to post-

implementation support, our dedicated team of

U.S. government specialists will ensure that your

solution is up and running as quickly as possible

and that your staff makes the most of its new tools

and processes.

12

13

Partner with a trusted advisor and proven U.S. government service provider

As a trusted advisor to the U.S. government for some

of its most complex and demanding transaction and

financial management needs, Citi can bring new levels

of efficiency and performance to your operations.

When you choose Citi to process your transportation-

related financial transactions, you’re partnering with a

provider that offers:

• Unrivaled global reach and on-the-ground presence

in more than 100 countries

• Domestic and cross-border payment capabilities in

180 countries and in over 130 currencies

• Membership in 202 clearing networks and payments

systems worldwide

• Cross-border ACH payments capabilities in

47 countries and 15 currencies

• Customer service in 22 languages

• Today’s most advanced and comprehensive

transportation payment processing platform

Learn more

For a demonstration of, or more information about, Citi Integrated Freight Processing, contact your Citi account representative or visit our website at

www.transactionservices.citigroup.com

Enhance the efficiency, reliability and

cost-effectiveness of your transportation-related

payments — and gain more control over them.

Citi Integrated Freight Processing

Global Transaction Serviceswww.transactionservices.citi.com

© 2012 Citibank, N.A. All rights reserved. Citi and Citi and Arc Design are registered service marks of Citigroup Inc.

914297 GTS25879 02/12