CargoWise One ERP is the main logistics software solution provides Autorating/Autocosting features that are essential to the system, designed for automating and improving various aspects of Supply Chain Management. These features enable the logistics companies to gain better control on pricing, price variability and costs by integrating the automated mechanisms of rate application, job costing and invoicing. But to optimally utilize the features offered by CargoWise, businesses usually need adaptations of the software that would suit their particular processes and strategies.
This success story aims at analyzing how Elicit Technology, a reputable CargoWise service partner, assisted a Middle Eastern logistics firm to improve the performance of the Autorating features. Through this customization, the pricing accuracy of these services improved significantly, manual data entry was minimized, and, in general, there was a general efficiency improvement.
Challenges Faced
Inconsistent Rate Application: The existing system at this company was a manual entry of data required to apply buy/sell rates which resulted to conflicting service pricing strategies by regions.
Complex Pricing Strategies: The company went through a problem of having a complicated and archaic system that did not suit the frequent and flexible changes in its prices as well as the different prices for different products offered.
Delayed Invoicing and Job Costing: There were common issues such as delay in invoicing and job costing, hence, leakage of profits and slow account settlements.
To meet these needs, the organization needed a tool that could help apply rates automatically, set up unique pricing tactics, and derive the proper income rating and job costing.
Solution Provided by Elicit Technology
1. Using Intelligent Calculators to Automate Rate Application
Apply rates seamlessly: Through the rules set in the system, the correct buy/sell rate for each shipment was retrieved to minimize errors and set the same rate for all sales.
Save time and resources: The use of the application to automatically apply the rates meant that the staff of the company could perform other more critical activities that involved applying rates to every shipment instead of typing the rates and checking whether they were correct.
2. Strategies for Configurable Pricing
Tailor pricing for different clients: With the help of this approach, it was now possible to establish individual rates that would depend on the portfolio size, tariffs within certain geographical zones, and individual contracts signed with clients.
Improve quote accuracy: The following rules were tailored to guarantee that quotations were developed with the right figure of profit margin, offer the consumer a decipherable price and at the similar time, ensure that the company wins.
3. Automated Job Costing and Revenue Rating
Automated costing and revenue rating: It automatically assesses job revenues and expenditures based on permitted client rates, corporate tariffs, gateway tariffs, and profit splitting arrangements. This guaranteed the accounts were balanced and the business operated profitably at all times.
Increased efficiency in job costing: A clear outcome was that completing job costing automatically freed up time to monitor operational costs more effectively, dispensing with recurrent errors and time lags that could be associated with manual calculations.
4. Account settlement and timely invoices
Faster invoicing: Using correct and complete accounting data that has been inputted into the system, the company can generate and issue invoices. This was instrumental in minimizing time wastage as well as ensuring the customers paid on time.
Minimized profit leakage: The automation of charges and accounting data meant that all charges were properly posted and created, with no danger of failing to charge the appropriate revenue accounts or charging to the wrong accounts.
During the execution process, Elicit Technology offered practical assistance based on the current business practices and protocols. It also responded to existing practices and needs of the company to minimize the differences and optimize the CargoWise system specification. Also, for the new features which were automated within the company, Elicit Technology conducted staff training to guarantee that they were capable of utilizing the applications to the furthest extent.
Results
Accuracy in Pricing and Costing: Manual errors decreased which meant that the application of the rates, pricing, and job costing were much more accurate in the company. Because of this, the company was able to adopt a combination of cheaper yet profitable prices in the market for its clients.
Operational Efficiency: Cutting down the manual application of rates and job costing were very effective in CBO since automation relieved the burden of work among the staffs in processing more shipment in shorter time period. This also enhanced the company’s capacity to deliver on the client requirements and timelines.
Timely Invoicing and Account Settlement: When implementing the designed system, the company experienced a cut down on invoice processing time by 20 percent which reduced the time taken to clear accounts and hence exposed the company to better cash flow.
Customized Client Solutions: The existence of the option to configure specific and particular price strategies proved suitable in making it possible to serve the client by providing excellent and satisfactory rates as well as certain services.
Conclusion
With the help of Elicit Technology, this Middle Eastern logistics company broke free from the restraints of the old system and activated the additional features of CargoWise One ERP’s Autorating services. In addition to suggesting the elimination of manual job costing and preventable invoicing errors, the use of the automated system proved efficient in applying rates that were tailored to fit clients’ needs, thereby increasing the company’s service delivery.
This particular project proves that the shipping industry can benefit greatly from CargoWise’s customization and automation features, and it is crucial to work it with service providers who have dealt with the software, such as Elicit Technology.
