The document discusses features of the WebXpress fraud management solution and suggested processes to prevent fraud and leakage in the Indian logistics sector. It provides examples of common fraud like underreporting load weights, using market vehicles instead of own vehicles, and reporting higher market rates. It then explains how WebXpress helps by enabling random weight checks, GPS tracking of vehicles, approved rate settings, and ensuring unique challans cannot be reused. The document also discusses leakages from late or non-billing, rejection of incorrect bills, and not recovering valid deductions, and how WebXpress features like automatic billing and contract enforcement can help address these.

1. Solution Features and Suggested Processes
Fraud Management @
WebXpress

2. Background
 Indian Logistics sector is worth USD 100 bn
 Road Transportation alone accounts for more than 50% of logistics spend
 Over 50% to 70% payments for transportation movement is in CASH
TRANSACTIONS- that is approximate USD 20-28 bn or Rs. 100,000 Cr to
Rs. 150,000 Cr. In CASH
 As per Transparency International, over 22000 Cr. of bribes are paid by
transporters on Indian highways every year
 Thus, the sectors is highly prone to frauds and leakages
 This presentation outline some of the methods used by employees/
vendors/ customers to defraud transportation companies
 The presentation also discusses role of WebXpress Solution to prevent
some of the frauds and put in place processes to ensure accountability of
transactions
 WebXpress does not claim to solve the gargantuan problem of corruption in
the sector- but can help its customer protect themselves to best possible
extent

3. Transportation- riven with corruption

4. 20% of working time spent in paying bribes

5. Fraud Examples- Never told, never heard

6. It could happen to you !!
• A leading courier company recently found that over Rs. 70 lakh worth of To
Pay and Paid cash was never submitted to company and was pocketed by
employees
• An express cargo company found that a bets performing region was actually
making ghost booking and deploying ghost vehicles with real money taken
from HQ
• A fleet company found that their vehicles in return journey were showing
very low yield but were actually full of goods of outsiders
• A parcel company in India’s hinterland found that employees were collecting
more amount than reported and were reporting gap as customer deduction
• Many such examples are bound and India is not alone in such cases. Here
is a report from PWC showcasing global fraud in Transportation Industry:

7. How WebXpress Prevent Fraud?

8. How WebXpress prevents fraud
Fraud Description How WebXpress helps
Under reporting of
load
Booking clerk will report
weight as 400 Kg when it is
actually 600 Kg. 200 Kg.
moves free at company
expense and booking clerk
gets a tip from customer
• Random check of arrived consignments for
weight and volume
• Report DEPS in case of gap and system will
raise a TICKET
• Analysis of tickets will help to find branches
with maximum issues
Market vehicle in
place of own
vehicle
Branch places market vehicle
even when own vehicle is
available. Branch gets a cut
from market vendor.
• GPS on own vehicles will show where they
were at the time of placement
• Job sheet will show whether vehicles were
actually under maintenance
Market rate higher
than actual
Branch places vehicle at rate
higher than available in market
and pockets the difference
• Use WebXpress TAM module to approve every
placement
• TAM will show past tend of rates for same lane
• Also, random calls to market brokers will
provide real rate

9. How WebXpress prevents fraud
Fraud Description How WebXpress helps
Extra placement Branch places more vehicles
than required stating more
stock or urgent service request.
• Monitor vehicle load factor and raise alert for low
load factor
• Work out schedule of vehicle placement and
block a schedule once used
Ghost vehicles No vehicle is places and dummy
documents are created
• Insist on system generated Challans.
• They require system entry of LR and LR requires
real load.
• Do not allow same vehicle number once used till
the time it is freed at another location
Multiple payments
for same vehicle
Vendor submit same challans
multiple times over time and
get payments
• Vendor bill is booked in system before payment
• WebXpress never allows same challan to be
booked more than once- EVER

10. How WebXpress prevents fraud
Fraud Description How WebXpress helps
Request for more
cash than needed
Branch asks for cash for expense
on advance, conveyance, office
expense etc. even when they have
cash in hand
• WebXpress provides ONLINE view of CBS of
each branch and also of collection
outstanding
• Branches will get advance based only on
online balance. If branch has not updated
system, more cash will show
Late collection or
non reporting of
paid and to pay
Branch does not collect payments
in time. Or it actually collects but
does not report.
• Paid and To Pay outstanding reports will help
HO focus on collections
• Daily SMS alert can be sent to branches for
collection of outstanding
Wrong reporting of
deductions for
cash collection
Branch collects Rs. 3000 but
reports only Rs. 2500 were
collected and show gap as
deduction
• Send SMS/ e-mail to customer stating
collection and deduction amount
• Also send help line number if he feels wrong
data is sent
• This will ensure HO will know wrong
deduction as customer will not accept wrong
data

11. How WebXpress Prevents leakages?

12. Leakages
• Not all loss is dues to frauds, a much larger amount of
loss is due to leakages and inefficiency of operations
• WebXpress can be used to build practices that will
prevent or reduce many of these leakages
• Needless to say that organizational practices need to be
aligned with WebXpress system for best results

13. Prevention of Leakages
Leakage Description How WebXpress helps
Late billing LR remains unbilled for a long
time due to various reasons-
POD non arrival, comments by
customers, large volume etc.
• WebXpress can be used to scan POD and start
audit as soon as delivery is completed
• PODs that are audited can be parked as
APPROVED FOR BILLING
• Thus, bill can be expedited quickly and bills
submitted once PODs arrive
Late submission Bills are sent to branch but not
submitted to customer in time
• WebXpress can be used to note submission
details. It can then be used to track
unsubmitted bills
• Also, bill acknowledgements can be forwarded
with a scanned copy
• Electronic bills can be submitted to customers
where acceptable
Bill rejection Bills are rejected by customer
due to wrong contract details,
wrong rates. Many a times
contract is revised but bill is
made with old rates
• All contracts can be entered in system and LR
can get rates automatically. If contract is
expired, LR can not be made
• This will ensure that bills are correct and
rejection is minimized

14. Prevention of Leakages
Leakage Description How WebXpress helps
Recovery of
deduction s
Customer provides details of
deduction quite late. If the
same is not investigated, it
can happen that wrong
deductions are made
• WebXpress recovery module tracks every
deduction against every LR
• This also helps customer work with customer
and recover amounts where possible
• This can be recorded against the LRs
• Also deduction by customer can be recovered
from vendors or employees
Rate enforcement Users enter the rate as they
see fit to get business from
customer. This results in loss
to company
• Standard contracts, yield limits, minimum
charges, weight etc. can be entered in
WebXpress system
• LR entry can then be done only in accordance
with contracts or standard rates. This will
ensure minimum business for company at no
loss
Last mile cost
control
Delivery to customer premises
from hub is last mile delivery.
Many a times delivery cost per
Kg is much higher
• WebXpress can be used to focus on pick up
and delivery cost per Kg.
• This will help to ensure that there is no excess
payment in last mile

15. Prevention of Leakages
Fraud Description How WebXpress helps
Vehicle
Underutilization
Branch/ Hub places vehicle with less
than optimum load due to
“operational reasons”
• A rule can be set that any vehicle
must be utilized to say at least 70%
of capacity, else approval needs to be
granted
• Cost per KGKM rule- the cost and load
in vehicle should be such that it meets
cost per KGKM criteria protecting
margins
Underutilized
route segments
In a multi-point route, a particular
segment is run less than optimum
• WebXpress route analysis can help to
monitor trend in segment wise usage
of a route

16. CONTACT US