The inet Transportation Management System (TMS)

on Track wiTh FrEiGhT coST ManaGEMEnT.

Michaela Pazderkaoffice manager

Detailed freight costs at the push of a button

Globalization, international trade relations, new markets,

shifting production locations and other market-based

trends are leading to a continual increase of transpor-

tation volumes. As a result, transportation costs increase

considerably if cost drivers are not identified and reduced.

More stringent legal regulations and compliance require-

ments equal more good reasons for closely analyzing

transportation management costs, regularly carrying out

measures of optimization and guaranteeing traceability

and transparency. The most reliable tool to permanently

lower freight costs is an effective and efficient freight cost

management. Cost savings can already be accomplished

through consistent and automated checking of the proper

use of conditions, rates, numbers and weights.

As an internationally operating software company, we

develop an integrated, scalable and flexible Transportation

Management System (TMS) with expertise, innovative

ideas and the courage to blaze new trails. This gives our

customers a clear lead – beyond standard.

Our Freight Cost Management solution offers you an

efficient system that allows you to reliably, quickly and

economically realize your goals regarding the settlement,

monitoring and analysis of your freight costs, thus ensur-

ing your competitive advantage.

chooSE ThE DirEcT way.

322 3

ANINTEGRATEDREAL-TIMEDATABASE

ANALYZE

PLAN

EXECUTE

CONTROL

SUccESSFUL FrEiGhT coST ManaGEMEnT caLLS For a PLan.

From consistent rate management to daily freight cost analysis

Our Freight Cost Management solution facilitates

complex freight settlement processes in an easy and

audit-compliant way. The system comprises a host

of different settlement models and freight rates for

every mode of transportation, thereby creating the

required transparency for the prevention of faulty or

duplicate invoices and the charging of unwarrant-

ed additional costs. This simplifies the analysis

of freight costs in global transportation networks

considerably.

Worldwide and compliant cost control

Managing global transportation networks means ha-

ving to comply with diverse country-specific finance

requirements, among other things. The possibility

to use different settlement models, like credit note

and invoice procedures, for various partners within

one system represents a great advantage. Moreover,

compliance requirements are fulfilled through our

integrated Freight Cost Management, continuous log-

ging of data changes, workflow-based authorization

processes, traceable version management of genera-

ted bills and the monitoring of electronic interfaces to

the finance system.

inet Freight Cost Management offers:

Cost optimization by

preventing duplicate or faulty invoices

preventing the charging of unwarranted

additional costs

automating settlement processes and freight

cost verification

strengthening the negotiation position in

transportation sourcing

Increased reliability through

the use of current and proper rates

frictionless interaction and communication

one consistent and complete database

KPI reports

Increased security and transparency through

compliance with authorization policies

usage-based cost allocation

the prevention of document reversals

the use of digital signatures in electronic

data exchange

Closing the loop – competence in each phase

ThE inET TMS aT a GLancE

Transportation Order Management

Container Demands Planning

Strategic Transportation Planning

Transportation Sourcing

Freight Cost Calculator

Network Design

Dynamic Transportation Planning

Transportation Dispatching

Global Trade Compliance

Container Fee Settlement

Freight Cost Calculation

Container Maintenance and Claims

Transportation Analytics

Freight CostSimulation

Freight Billing / Self-Billing

Freight Invoice / CreditNote Verification

Mediation

Freight Cost Claiming

Freight Rate Management

Dock Management

Cross Docking

Continuous Replenishment

Freight Cost Allocation

Visibility

Freight Rating Container Inventory

Management

Container Scheduling

Multi Parcel Shipping

Multi Carrier Communication

The highlighted modules are part of the Freight Cost Management solution. Additional information on all other solutions and services can be found in the respective brochures and on the Internet at www.inet-logistics.com.

4 5

ThE FaSTEST way To oPTiMiZED FrEiGhT coST ManaGEMEnT.

The inet Freight Cost Management solution in detail

The modules of the Freight Cost Management

solution can be used individually and in combina-

tion. The service-oriented architecture as well as

certified interfaces ensure that all processes can be

combined quickly, easily and efficiently with one

another. Furthermore, they can be implemented in

existing transportation management networks and

linked with the existing system.

Freight Cost Calculator

Assess freight costs exactly

Whether during the process of submitting an offer,

while entering orders or later on during dispatching,

freight costs always play a big role. After entering

the planned shipments, their freight costs are pre-

calculated. To determine the right logistics service

provider for your shipments, it is important to be able

to compare the costs of the various service types (ex-

press, delivery by 10 a.m. etc.). Using the Freight Cost

Calculator module, the freight costs for a transporta-

tion request or a specific transportation order can be

determined. In addition to the rates negotiated with

the logistics service providers, benchmark rates can

also be stored.

Freight Rate Management

Manage and maintain freight rates transparently

The rates agreed upon with the individual logistics

service provider are stored transparently and

detailed in the Freight Rate Management module,

regardless of their complexity and number. Rates

and prices for different modes of transportation (air,

sea, road, rail), and various cost drivers (lbs, qty, mi,

loading meters etc.) and cost types (freight, demur-

rage, delivery attempts etc.) are deposited. The

flexible definition and maintenance of zone matrices,

VAT decision tables, calculation rules and their valid-

ity enable a precise and usage-based determination

of freight costs. For each billing case, rules for the

application of the respective conditions are defined

in decision matrices. Various currencies and their

exchange rates, vessel exchange rates, customs

rates, as well as country-specific tax-rates are

definable. The same applies for settlement models,

minimum and maximum prices, additional costs,

discounts and cost types. Exchange rates are auto-

matically updated each day and taken into account

for freight cost calculation.

Mediation

Collect settlement data, integrate legacy systems

and supply chain partners

In the Mediation module, a valid database for Freight

Cost Management is generated and enhanced for the

automated process. Only this way it is possible to

guarantee that freight costs are calculated and settled

properly. In a further step, billing cases that form the

basis for Freight Cost Calculation are generated from

the transaction data that is transferred to the module.

Freight Cost Calculation

Calculate freight costs based on actual shipments

Companies have to determine freight costs for a multi-

tude of transportation types and modes and settle

them with diverse partners. Freight costs for one and

the same shipment must be settled with multiple par-

ties involved. The automated and usage-based freight

cost calculation is carried out in the Freight Cost

Calculation module on the basis of the freight rates,

calculation rules, VAT decision tables etc. provided.

There is a multitude of calculation methods for these

freight rates. In a first step, the transportation data

transferred is summed up into rating units based on

the respective rules (e.g. according to tours with the

same consigner, consignee etc.). In a second step, the

actual freight costs are calculated under consideration

of the rates stored.

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Freight Cost Allocation

Allocate freight costs depending on usage

In order to correctly determine profits and losses, it is

absolutely necessary to be able to allocate and book

freight costs to the actual originator of the expense.

The costs must be assigned to the order, the product

group, the goods and the business units involved. In

the Freight Cost Allocation module, the automatically

determined freight costs are then allocated to the re-

spective transportation orders or goods according to

criteria like volume or chargeable weight. Even multi-

mode shipments are no problem. Further charging to

different recipients is an integral part of Freight Cost

Management. Every partner involved profits equally

from this functionality because nowadays either

logistics service providers bundle several transporta-

tion orders or customers combine their shipments

with those of other companies to reduce transpor-

tation costs. The allocation of incurred freight costs is

carried out precisely for each individual goods.

Freight Cost Claiming

Claim, verify and approve additional costs incurred

The Freight Cost Claiming module enables logistics

service providers to register additional operational

costs online (e.g. for demurrage or delivery at-

tempts) for the respective shipments. The verifica-

tion and subsequent approval or disapproval of the

additional costs is web-based. During this process

all partners involved have the possibility of viewing

the settlement status of the individual shipments at

any time. Notification of the approval of the addi-

tional costs by the logistics service provider is car-

ried out in the Freight Cost Claiming module based

on predefined workflows. Authorization workflows

ensure compliance with legal and business policies.

Partners involved can be sure that only the stipu-

lated transportation agreements are used for the

calculation. This way, additional costs are dealt with

before billing and claims are processed at the proxi-

mate time of the physical transportation. As a result,

invoices are almost never cancelled.

Freight Billing/Self-Billing

Settle freight costs using invoice or credit

note procedures

When generating freight invoices, data from the

executed shipments and services provided is used,

including the approved additional costs. These docu-

ments are then sent electronically to the finance IT

systems involved for further processing. In addition,

the invoices can also be transmitted in electronic

form to the invoice recipient.

When a freight credit note is prepared, the credit note

is created including the approved additional costs.

Afterwards it is transmitted electronically to the

finance IT systems of the partners involved.

In the Freight Billing/Self-Billing module, it is always

ensured that only services that were agreed upon

according to the stipulated rates are billed and only if

the respective shipments were actually executed.

Freight Invoice/Credit Note Verification

Match invoices/credit notes automatically

In the Freight Invoice/Credit Note Verification mod-

ule, incoming documents (invoices, credit notes etc.)

are received electronically or entered manually. The

items of the incoming documents are then matched

with the freight costs already calculated. Any devia-

tions are recorded in discrepancy lists and corre-

sponding corrective bookings (e.g. reversal debits for

exceeding freight costs) are carried out. At the time of

invoice or credit note receipt, all the required infor-

mation for freight invoice/credit note verification is

readily available.

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Transportation Analytics

Make decisions based on consolidated data

The Transportation Analytics module enables clear

analysis of freight costs. Daily reports based on your

predefined parameters make a comparison of the

actual freight costs to the projected costs possible.

Configurable dashboards with easy to understand

KPIs enable central controlling and easy access to all

relevant information. With the help of these KPIs you

can monitor and analyze stipulated freight costs,

additional costs and special fees.

Freight Cost Simulation

Estimate changes in the costs of transportation

management

The Freight Cost Simulation module creates reliable

data for analyses and scenarios that provide you with

the best possible basis for forecasting future transpor-

tation spending. Analyses enable the comparison and

evaluation of quotations in tenders, thus helping in the

negotiation of the final rates. Hence, the optimal logis-

tics service provider can be selected by region, mode

of transportation or route. The results can be viewed

and exported in tables and graphs.

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AT A GLANCE

inet Freight Cost Management

freight cost calculation for all types and

modes of transportation

automated generation of invoices and/or

credit notes

reliable, transparent freight cost claiming

entire verification of all incoming and

outgoing freight cost bills

support for international currencies,

exchange rates, various units of measure-

ments and VATs

continuity and scalability from planning to

KPI reporting

audit-compliance through fulfillment of

international compliance requirements

consistent and valid data for negotiations,

reports and analyses

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www.inet-logistics.com

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