Freight Audit Services

Background
As the general economy has become a global market place, the number and quality of competitors have increased for most companies. As world wide demand has increased, most companies have experienced a significant increase in the cost of many key raw materials and/or in the cost of all energy related costs. Because of competitive pressures, most companies have limited ability to pass on these cost increases to their customers in the form of price increases. As a result, they are continually challenged to improve the management of their costs. Based on our experiences, many companies, unknowingly, face large opportunities to significantly reduce their freight expenses.

See Glossary of Freight Terms for definitions of commonly used terms for freight and shipping management processes.

Overview
Our Freight Management Audit Services are targeted for companies that want to quantify what opportunity they have to improve the effectiveness of freight management processes.

Our Freight Management Audit Services are offered jointly with Wavechange Logistics, and are tailored to each opportunity.

Typical Management Goals
Gain an objective assessment of the current freight management processes, and determine what financial opportunity there is for making improvements.

Typical Project Scope
Review of our client's current freight management processes for managing both in-bound and out-bound freight expenses.

Typical Project Schedule
Projects are typically completed in 2-4 weeks for medium size clients, and 4 - 8 weeks for large size clients. The actual amount of time that K&A needs to spend being on-site at the client is less than 1/2 of this total elapsed time.

Typical Project Approach

  1. Finalize scope and objectives of project with the Executive Team.
  2. Establish project budget and schedule.
  3. Review current agreements with current freight carriers.
  4. Conduct on-site review of customer order fulfillment process.
  5. Conduct on-site review of purchase order management process.
  6. Conduct on-site review of estimating or pricing process.
  7. Conduct on-site review of any special freight requirements.
  8. Conduct on-site review of current freight payment process.
  9. Develop written observations of the current processes.
  10. Develop written recommendations for improving current processes.
  11. Discuss observations and recommendations with Executive Team.

Typical Project Deliverables

  1. Written observations and recommendations.
  2. Summary of freight requirements and expenses by carrier and mode.
  3. Recommendation for a target freight savings goal.
  4. Initial draft of schedule for implementing recommendations.
  5. Meeting to discuss findings with the Executive Team.