Saving Millions with the RateLinx Freight Solutions
We attended the CFO Summit XXIX, November 13-15, where our case study revealed how Fortune 500 firms can save 20% on freight. The Summit explored the key aspects and issues related to financial best practices and their application as business drivers for innovation and growth. Many CFO’s told us that events like this one help the CFO stay current and expand their perspective, and because perspective drives assumptions it is important that each CFO’s perspective stays current.
Technology Is Drastically Changing CFO Success
One specific Keynote that stood out was by the former CFO of Fifth Third Bank. She spoke about how technological inventions have drastically changed what will make the CFO successful. Today the CFO needs relevant, fast information, and they have to establish standardized and consistent measures of data. She stated that the information has to be transparent, and asked the question ‘How do you get this quickly? I almost raised my hand to answer her question with ‘By using Ratelinx.’
The CFO was describing the RateLinx Dashboard and how it takes the data from the TMS, matches it with the invoice data from the carrier, then standardizes it during the freight audit process, then displays it in real-time on the Dashboard. This is the very definition of Integrated Shipping Intelligence. And in order to build fast access to the relevant data and understand the product level profitability, the CFO must collaborate with the CIO. This is why relevant logistics data is so important to have because a big piece of product level profitability is in the cost of the freight.
With Integrated Shipping Intelligence, we breakdown the cost of freight to an item level and make the information understandable. As the CFO ended her talk, she stated that in order to be an innovator you have to understand the numbers and have curiosity for the data. But she did leave out that you actually have to have the data as well’ This is one of the benefits of RateLinx: data.
The Value of Integrated Shipping Intelligence and the Five ‘F’s’
Steve Horler presented a great case study on how Ratelinx’s tools helped Masco turn their logistics functions from a tactical necessity into a strategic asset during the Friday, November 14 session ‘Improving Shareholder Value: How Leading-Edge Logistics Approaches Can Impact Profitable Growth, Margin Improvement and Capital Efficiency.’
Turnout was great and a key point of the presentation included how the RateLinx freight solution is a system of complementary processes and tools designed to facilitate effective and efficient sourcing. The visibility of the data in real-time allows a company to ask questions so they can develop opportunities and create viable solutions which give you improved results. Another point that was touched on is the way RateLinx works with its customers to provide a ROI in a few months. Then the rest of the projects are all self-funded through the savings provided by the tools.
By using the RateLinx tools to obtain Integrated Shipping Intelligence, Masco was able to achieve a world class supply chain with the five ‘F’s’: Fast, Financially Focused, Flexible, Fungible, and Facilitative. Because of this, other Fortune 500 companies can save 20% on their freight spend by using the roadmap RateLinx provided to Masco. A CFO in the audience asked Steve if the TMS used was written in-house because of how perfectly it worked for all of Masco’s different business units. Steve’s answer was, ‘No. It was ShipLinx TMS that made the solution so powerful.’ ShipLinx TMS is customizable and can be tightly integrated into any ERP/WMS, but yet it still deploys very quickly. This is what allowed RateLinx to deploy the TMS in seven days at one business unit, while the longest it took was 90 days for their most complicated units.
What to Watch for Next
We will be doing a workshop on day one of the American Supply Chain & Logistics Summit that will be focused on the foundation of Integrated Shipping Intelligence: the data and how you get relevant and transparent information quickly. This workshop should allow us to further define the value a company can extract from the solutions we offer. If you would like to know more about the workshop, please email me with any of your questions.