Freight Transaction Automation Tool (FTAT)

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It is becoming increasingly important that companies have tight financial control over their operations.

WebXpress FTAT provides shippers with the means to effectively manage their freight audit processes in-house and increase productivity, reduce freight expenses and stay compliant with tight financial regulations.

WebXpress is an IT and Solutions company that offers services in the domain of Logistics.
Founded in 2004 the company has a presence in India, Saudi Arabia, East Africa, and South Asia.
Our idea is to connect all stakeholders in supply chain and provide visibility.

Published in: Technology, Business
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Freight Transaction Automation Tool (FTAT)

  1. 1. Enhance Your Productivity Freight Transaction Automation Tool
  2. 2. Agenda  Overview of FTAT  5 Simple Steps of Implementation
  3. 3. Vendor Management • Vendor Addition • Vendor Data Integration with ERP Rate Contracts • Vendor Rate Contracts • Supports multiple businesses such as FTL, LTL, Cold Chain etc. Transaction Upload • Booking data from ERP • Booking data entry also possible Rate Application • Auto rate application to Booking Data • Marking of data not as per contract Freight Bill Verification • Vendor bill data upload • Auto verification of vendor data with booking • Marking of discrepancy Freight Data Modification • Discrepancy report • Data Edit Tool Freight Billing • Vendor bill passing • Vendor bill data integration with ERP • Direct Payment possible POD Management • POD data upload from vendor • POD scan image upload GPS Integration • GPS integration with booking data • Google API integration FTAT Overview
  4. 4. About WebXpress Freight Automation • It is becoming more important than ever that companies have tight financial control over their operations. • Firms need a solution that automates the entire freight payment process and tracks how accurately carriers are billing as well as how actual costs match planned costs. • WebXpress Freight Transaction Automation Tool provides shippers with a means to effectively manage their freight audit processes in-house and provide opportunities to increase productivity, reduce freight expenses and stay compliant with tight financial regulations. • The basic function of WebXpress FTAT is to automate the freight audit process and initiate payment to carriers. • This is achieved by matching and auditing expected freight costs against invoiced charges and keeps the track of unpaid or un-invoiced dockets for particular vendor.
  5. 5. Key Capabilities of WebXpress FTAT • Web based solution tool • Possible to use EDI Technology to integrated with Enterprise ERP • BI Integration for in depth analysis • Allocation of vendor portal for invoice upload utility • Vendor contract creation and contract maintenance • Auditing of freight and accessorial charges • Validation of invoices against delivery notices • Authorization of payment to financial systems
  6. 6. FTAT Flow Customer ERP Vendor Freight System WebXpress Freight Automation Tool Vendor rate Contract Step 1 Consignment Booking Data from ERP Step 2 Booking Data Verification as per contract Step 3 Freight Bill Data from vendor Step 4 Freight Bill Matching with Booking Data and rates
  7. 7. Freight Transaction Automation Flow POD Data received from mobile app 1.POD & Check list Clean 2. Vendor master + rate pull from SAP 3. Invoice received soft / hard copy 4. If soft directly pulled into FAT 5. Bills reconciled for each transporter If hard copy received then bill copy scanned and OCR run done – requires manual check If not clean then message to transporter and flagged for intervention 1. CN Number does not exist 2. POD unclean 3. Freight Rates Not Matching 4. Delivery Dates > promised time for delivery 5. Damaged consignments after POD 6. All OK - Payment date due 7. All OK - Payment due after current date 8. Incomplete Bills 6. Edit & Change the bill if required 7. Pass for payment to Finance system
  8. 8. Step 1. New Vendor Creation Vendor Data can be automatically pulled from ERP through web services/EDI and can be automatically get populated in FTAT OR The same can be entered in Vendor Creation master in the tool
  9. 9. Vendor Master Entry Form • Vendor master data can also be received from ERP using XML Data Bridge/ EDI • This data will then be stored in vendor tables
  10. 10. Vendor Created Successfully Every vendor has unique code – can match with your ERP code
  11. 11. 2. Vendor Rate Contract Creation This has details of rate Contracts as entered with vendor for various lanes. It also has a number of business rules and charges defined
  12. 12. Vendor Contracts  Can capture Rate Contract with vendors  Rate Contract with vendors can be for Full Truck Load, per unit, per unit mile etc. with multiple accessorial charges options  Rate Contracts are automatically applied to transactions and will also be used for freight audit  The data for the same can be received from ERP, using XML file or through Manual Entry
  13. 13. Vendor Contract Creation Linked through finance & accounts
  14. 14. Vendor Contract Creation 1. Automatic Contract Upload: XML or excel upload Vendor Contract Creation 2. Manual Contract data Entry in the System
  15. 15. 1. Contract Creation
  16. 16. 2. Manual Contract data Entry in the System
  17. 17. Vendor Contract Summary • In this step, we are able to add data for contract summary • We can define start and end date of contract • This will be used for Freight Audit to confirm if transaction is done during contract validity period
  18. 18. Vendor Services Details • In this step, we are able to define various services provided by vendor • We can also specify charges for the services and business rules • This will be used for Freight Audit to confirm if transaction is as per services agreed • Can select modes
  19. 19. Contract creation contd. • This step defines additional services and billing conditions for a vendor including Insurance, penalties
  20. 20. Contract Creation Contd. • This step defines product wise minimum payment terms, volumetric conversion and fuel charges
  21. 21. Charges Definition • This step defines vendor payment heads and their behavior • Charge can vary by location combination, by product and can be slab wise as well • Charges option
  22. 22. Charge definition • Here we specify exact charge amount for a specific head
  23. 23. Rate Matrix Charges are enabled
  24. 24. Rate Matrix • Here we specify charges for a From and To city or Location to Location basis • Drop charges can be added
  25. 25. 3. Lorry Receipt (LR) and Proof of Delivery (POD) Integration Facility Data can be pulled form ERP / Mobile application
  26. 26. 3.1 LR Manual Upload Utility Here we can upload Consignment/ Dockets in the system through this utility or LR can be directly pulled in from ERP
  27. 27. Error Check Utility after CN Upload process 1. Contract No. check for particular Vendor 2. CN Booking Date check 3. Location/ City Check (From Masters)  If system find out single error in upload process then system will automatically generate email to vendor who will try to correct data sheet and upload again.  Remaining error free data will be processed further.
  28. 28. 3.2 POD Utility in System
  29. 29. POD Entry in the System A. Automatic Upload: XML or excel upload POD Upload B. Manual POD upload using DFM Module C. Mobile App Upload
  30. 30. Automatic POD Upload: XML or excel upload
  31. 31. Penalty Clause after uploading of POD • System will check below things in the backend after completion of upload POD process. 1. Trailer Arrival Date 2. Trailer POD Accepting Date 3. Damage Remarks (Download Facility available for user) • System will display penalty amount based on below formula Trailer Arrival Date Trailer POD accepting date Penalty Amount
  32. 32. 4. Vendor Bill Entry Facility in FTAT
  33. 33. Vendor Bill Entry Facility in Software A. Entry in ERP Methods for Vendor Bill entry in System C. XML / EDI options
  34. 34. Vendor Bill Excel sheet upload utility
  35. 35. Vendor Bill Excel sheet upload utility Vendor Selection by using auto search option After selection of vendor we can upload vendor bill excel sheet System can maintain the masters of vendors in the system
  36. 36. Excel file format which can be configured as per requirement Excel data is uploaded of vendor bills in the system
  37. 37. Confirmation screen of Vendor Bills upload Here system will upload excel file of vendor bills manually or automatically with the help of Data Service . Incase mandatory data is not filled on wrongly filled the system sends out an e-mail and does not hold the data
  38. 38. 5. Reconciliation Reports
  39. 39. Reconciliation Process after Bill Entry  After Vendor Bill upload process system will work through complete and incomplete data. Incomplete data will store in a separate table available in report format to rectification and correction with auto e-mail facility to vendor once every week.  System will test the entered data on the basis of some parameters 1. Data added with blanks 2. Bad Formatting 3. Duplicate Entry – Alert Generation as a mail  Action After reconciliation 1. Automatic mail will be generated with attached excel sheet to vendor every week highlighting the no. of problematic entries. This will be held in a separate table called “incomplete bills” 2. Remaining correct data will be passed on for next step 3. If wrong data is corrected and uploaded again then the data in incomplete bills would be automatically deleted from the table
  40. 40. Reports generation before payments
  41. 41. Reconciliation Reports Generation Software checks data which is entered through Automatic Invoice upload facility and provide 8 types of reports to Providers so that providers can take the further decision about vendor payment based on the reports Reports will be available Branch wise Sr. No Report Type 1. CN Number does not exist 2. POD incomplete 3. Freight Rates Not Matching as per Service level contracts 4. Actual Delivery Dates higher than promised time for delivery 5. Damaged consignments after POD 6. All OK - Due date completed 7. All OK - Due after current date 8. Incomplete Bills For sl no 1 to 5 & 8 weekly mails are send to the carrier
  42. 42. Actual Delivery Dates higher than promised time for delivery Report Format Actual Delivery Date
  43. 43. Damaged Consignment list after POD Report List of C Notes
  44. 44. Payment Reduction Decision based on Reports • Customer will access all this reports and take the decision about vendor payments. • If he find some deviation in consignment delivery then reduce payment option is available on auto or manual mode.
  45. 45. Payment Decision Query Page
  46. 46. Payment Decision Screen Click on bar to display table KK Transport This starts the Bill settlement process 1. Select Period / all 2. Select transporter 3. Select Report type / all 4. Click on pass or Edit
  47. 47. Invoice No Cnote No Charged Rate Rate as Per Contract Notes for bill payment Action 112245 100322 25,445 25,445 112246 100323 26,556 26,556 112247 100324 26,730 25,500 112248 100325 27,200 26,000 Edit Pass Edit Edit Edit Pass Pass Pass Payment Decision Table – Excess Charged 1. Charge can be amended 2. Click on Invoice to get details
  48. 48. Case 1 • If Provider choose to pass the amount as carrier has delivered the consignment as per contract terms and conditions, vendor bills will be paid and cleared. Case 2 • If Provider has some issues with the service of vendor then he can choose to do the payments against bills with some amount reduction Case 3 • If Provider doesn’t want to pay the vendor against any bill then he can change the amount to 0 of NO PAYMENT and all this Bills will be in pending mode Cases after Payment Decision Screen
  49. 49. 6. Vendor Bill Payment Tracking
  50. 50. Report Menu POD not billed also available as a report
  51. 51. Vendor Outstanding Report Menu
  52. 52. Report Query
  53. 53. Vendor Outstanding Report : View
  54. 54. Rate Charge Setup Detailed Process
  55. 55. Tool caters to four types of Charges  Direct Rate Based:  These charges are the contract charges and are directly applied while preparing the bill  Accessorial Rate Based:  These charges are the ones wherein rates are maintained one time and may be revised over a period of time  Accessorial Event Based:  These charges are incurred on the trigger of a time based event  Performance Based:  These charges are based on the performance matrix of the carrier
  56. 56. Direct Rate Based
  57. 57. Direct Base Rate Setup • The tool can set up rates for – Less than Truck Load- parcels , packages etc. – Full Truck Load-[FTL] – Full Container Load-[FCL] • Base rate can be defined on the basis of: – By weight and volume – By Vehicle type – Per Package/ Piece – By distance – Zone / Lane based – Home delivery / Hub Delivery – Direct vs Multi drop • Rates for following modes can be setup – Air, Express, Road, Train • Rates for following services can be setup – To be billed, Paid, To Pay • These rates can vary from city to city, inter branch or it can vary from Zone to Zone as per transportation network & its serviceable areas
  58. 58. Base Rate Setup (FTL Example) • Scenario: We will now setup base rates for FTL movement on lane basis • Step 1: To activate the FTL based charges, user can select that FTL service is applicable for that carrier by selecting the check-box • Step 2: User has the option of maintaining base rates according to transport modes like road, express, air, etc.
  59. 59. Base Rate Setup (FTL Example) Continued… • User can also select whether the rates need to be maintained at city level or zone level or network locations level. • Network location levels would imply the serviceable branches or hubs or delivery centers of the LSP. • First priority is given to city rates, then to location rates and then to zone rates. However, this is configurable
  60. 60. Base Rate Setup (FTL Example) Continued… • Step 3: User can maintain the rates based on From and To location. It can be maintained at FTL Type level. User needs to define the rate type and mode. • Following Rate Types are available in system: – Flat: It means rate would be defined irrespective of any parameter like weight, number of packages, etc. – Per PKG: It means charges will be applied based on number of packages in a consignment – Per KG: It means charges will be applied based on the weight of the consignment – Per KM: It means charges will be applied based on the distance which the consignment has to travel • The consignment can be transported using following modes for which rates can be defined separately: – Air, Express, Road, Train (Express implies with committed delivery time)
  61. 61. Accessorial Rate and Event Based Charges
  62. 62. Tool Coverage for Accessorial Rate Based Charges • Following Rate Based Accessorial Charges can be maintained in system – VTS / Telephone Charges – Brokerage Charges – Docket / Documentation Charges – Risk / Insurance Charges – Outside Delivery Zone Charges – Handling Manual / Equipment Charges – HAZMAT (Hazardous) charges – High Value Shipments charges – COD/DOD Charges – Expediting Charges – DACC Charges – Dismantling Charges – FOV Charges
  63. 63. Tool Coverage for Accessorial Charges (Event Based) • Following Event Based Charges can be maintained in system: – Demurrage Charges – Detention Charges – Express Delivery Charges – Cut-off time
  64. 64. Tool Coverage for Accessorial Charges (Performance Based) • Following Performance Based Charges can be maintained in system: – Delayed Pickup Charges – Delayed Delivery Charges – Delayed Placement Charges – Damage based Charges
  65. 65. Setup – Accessorial Charges
  66. 66. Accessorial Charges (Rate Based) Setup • Scenario: We will now setup rate based accessorial charges in system for “Fuel Surcharge” • Step 1: To activate Fuel Surcharge, user can select “Yes” when asked for applicability of fuel surcharge • Step 2: – User can maintain the minimum fuel surcharge that will be applicable. The actual charges or minimum charges will be applied whichever is higher – User can also maintain maximum charges that can be applied – Charge rate needs to be maintained against a rate type (Per KG, % of Freight, etc.)
  67. 67. Accessorial Charges (Rate Based) Setup • Step 3: Maintain Fuel base rate in the master and revise it as and when the fuel prices hike. The history log will also be maintained date wise • Step 4: Maintain the revised fuel surcharge rate at customer level and maintain it for a time duration as shown below
  68. 68. Accessorial Charges (Event Based) Setup • Scenario: We will now setup event based accessorial charges in system for “Demurrage Charges” • Step 1: To activate Demurrage Charges for a carrier, select the carrier from the master list • Step 2: Enter the charge details in the Demurrage Matrix as shown in the next slide
  69. 69. Demurrage Charges Matrix
  70. 70. Accessorial Charges (Event Based) Setup Continued… • Step 2: – User can maintain the minimum demurrage charges. The actual charges or minimum charges will be applied whichever is higher – User can also maintain the maximum limit of charges that can be applied – Free storage days can be maintained for which demurrage will not be charged Step 3: Demurrage rate can be maintained based on three parameters: – Per KG per Day, Per Package per Day and % of Invoice
  71. 71. Accessorial Charges (Performance Based) Setup • Scenario: We will now setup performance based charges in system for “Late Delivery” • Step 1: To activate Late Delivery Clause, user can select “Yes” when asked for applicability of Late Delivery Charges
  72. 72. Accessorial Charges (Performance Based) Setup Continued… • Step 2: Grace period field will be there to maintain grace period allowed for delivery after expected date of delivery i.e. deduction will not be calculated for grace period days • Step 3: User can maintain Late Delivery Deduction Rate on following Rate types: – Flat, Per KG, % of Freight, % of Invoice, etc.
  73. 73. Thank You KEEP IN TOUCH Headquarters Regional Sales Office 114, Sundervilla, S. V. Road, Santacruz (West), Mumbai – 400052 +91 93 232 428 02 +91 22 325 735 60 ECFY Consulting Pvt. Ltd. 107, First Floor, Suncity Trade Tower, Sector–21, Gurgaon – 122001 +91 93 117 363 59 info@webxpress.in www.webxpress.in

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