International and Domestic Freight Analysis

Have you ever analysed on how much your company actually spends each year on international and domestic freight charges?

Are you aware that the Top 500 companies in Europe, spend in excess of an average of €14M each annually, purely on transporting goods from A to B? International Transportation alone is a true multi-billion euro industry.

Do you have any real knowledge of whether your transport department "spend" is either accurate or that you are getting value for money? Have you seen recent transportation cost analysis?

Only you really know the true answer to that. However, even the role of the traditional specific "Shipping / Logistics Manager" has rapidly been disappearing over recent years and merged with positions primarily filled with employees with other specific skills. In reality, very little emphasis is placed on analysis of transport costs.

For example are you aware of how many separate differentials are involved in the make up of your freight charges?

Far more than you probably think. Here are just a few that directly affect your costs: Size, Weight, Commodity, Origin, Frequency, Urgency, Method of transport, Carrier, Route, Seasons and Capacity.

All these transportation factors have an input on how much you spend.

Freight Charges should be a Controllable Overhead

The underlying conclusion is that shipping and freight charges are essentially, seen as an above the line expense. Invariably they are viewed as a cost of doing business - as opposed to a controllable overhead, which need to be regularly anaylysed.

Many companies have a good idea of their total transportation expenditure. In reality however, few financial personnel understand the processes involved and the variants that can impact them.

When you consider the benefits you can obtain, by taking a positive, forward thinking approach by auditing these transportation and logistical costs /services, placed directly against the expenditure which is tied up in an overhead that you may know little about - it makes a great deal of sense to employ an independant freight auditor today.

Internal Freight Auditing Ltd would be delighted to offer you an free, no obligation quote, to UK and European businesses, on how we can help you achieve measured results, with both visibility and control over your business transport expenditure. Find out how our Internal Freight Auditing Ltd can help your business by contacting us on 0 (44) 1675 466775 or emailing us at info@if-audit.com