Transportation is a crucial component of any supply chain and has become an increasingly significant cost for Finnish companies. The rise in fuel prices has led to transportation costs taking up a larger share of the total cost for many companies. To stay competitive, companies need to optimize their transportation costs. This is where the Freight Cost Analyzer comes in.
Optimization in The Cloud
The Freight Cost Analyzer is a cloud-based solution that was developed in cooperation between Profit Tracker Oy and Koivu Solutions Oy. It is a powerful tool that helps companies reduce transportation costs and improve competitiveness. Profit Tracker uses the Freight Cost Analyzer in its client engagements to provide a fact-based approach to reducing transportation costs.
Compare different transportation vendors
What has traditionally complicated the cost comparison of different transportation vendors is that each vendor provides their pricing structures with different formats and rules. This has led to lots of manual work and a spreadsheet mess.
The Freight Cost Analyzer provides a simple and efficient way for companies to compare different transportation vendors based on actual cost data. With this tool, consultants can conduct analysis to recommend the most cost-efficient transportation option for their clients. By analyzing the real cost of transporting goods, the Freight Cost Analyzer can help companies identify areas where they can reduce costs, such as negotiating better rates with transportation providers.
The freight Cost Analyzer uses the following inputs:
- Shipment report: This report contains real invoiced shipments. It gives the Freight Cost Analyzer a baseline to compare against.
- Supplier price information: This information includes rate cards, surcharges, and other pricing information from transportation vendors. Supplier data can be imported directly from the supplier’s data format.
- Analysis configuration: This refers to the parameters used to run the analysis calculation. The configuration includes information such as the suppliers to be analyzed, the time period to be covered, and any other relevant data.
With the above inputs, the Freight Cost Analyzer uses sophisticated simulation logic to calculate prices against shipment reports for the configured suppliers. This simulation logic ensures that the analysis is accurate and provides a reliable comparison of transportation costs.
Computed Analysis Report
The output of the Freight Cost Analyzer is a Computed Analysis report, which displays the difference between invoiced prices and simulated prices for each compared supplier or contract. This report provides valuable insights into the actual cost of transportation and can help companies identify areas where they can reduce costs.
Summary
“This tool enables us to focus on the most value-adding tasks – the analytical thinking – and save time on formatting transportation vendors’ differing input data. Also, we appreciate that the user interface is Excel as we know how to use it while all simulations take place in the cloud and data is saved in a cloud database,” says Minna Holopainen, Partner at Expense Reduction Analysts.
About Profit Tracker
Profit Tracker Oy is part of Expense Reduction Analysts – a global network of experts who can provide local knowledge to corporations, delivering Value through Insight to improve financial flexibility and helping to gain a competitive advantage. For more information, see https://en.expensereduction.com/
About Koivu Solutions
Koivu Solutions Oy is focused on developing advanced cloud solutions that are super easy to use. Koivu’s services consist of consulting, solution development, and proprietary products, such as the Koivu Cloud that enables fast creation of SaaS solutions based on extensive SaaS platform services. For more information, see https://koivusolutions.com/ and https://koivu.cloud/
