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AFS CASE STUDY
Purvis Industries
AFS Services: Freight Audit & Payment, LTL Cost Management, TMS, Parcel Cost Mangement and GL Coding
ABOUT THE CUSTOMER Family owned and operated industrial distributor, Purvis Industries began as an auto parts and tractor supply store in Waco, Texas over 75 years ago. The company has since expanded to 12 separate business units with 92 locations and prides itself on offering top-quality products including bearings, mechanical, fluid power, engineering, conveying, precision loadout and material handling systems, industrial automation, total belting solutions, oilfield and mining supplies, hydraulic service and more. CHALLENGE Purvis’ growth and expansion brought rising transportation costs. However, monitoring and assessing precisely how much costs were increasing had become more difficult because the company did not have a good audit process for their LTL and parcel invoices or a GL coding process to ensure proper cost application to each of the company’s locations. Not only was Purvis auditing their invoices through a full-time position within their finance department (which reduced their internal resources), but the company lacked the ability to assign the right cost at the facility level, which is critical to producing a clean profit and loss report. Purvis also had no way of knowing if they were being overcharged for shipments. Combining this scenario with general rate increases (GRIs) and inflation resulted in transportation costs that were no longer market-appropriate. It became a struggle for Purvis to combat the increase in costs without sacrificing service or passing the financial responsibility onto their customers, which simply was not an option. “Every dollar you pass from the cost of goods and to customers has to be correct. A more accurate cost to customers means those reductions in uncollected freight expense create a return to the bottom line” said Bob Moran, Chief Financial Officer of Purvis Industries. The company knew they had to make some changes but with their double-digit business growth and limited staffing, Purvis lacked the time to invest in making updates to their current process. “We also didn’t have a transportation management system (TMS) in place or the time and knowledge to find one, let alone implement and expand our carrier relationships,” Moran added. As a result, the company was spending hundreds of hours manually quoting and booking shipments.
$86,000 RECOVERED IN CARRIER OVERCHARGES IN THE LAST 12 MONTHS
>$1.7M REDUCED LTL SPEND ANNUALLY
REDUCED PARCEL SPEND ANNUALLY >$321,000
STEER TRANSPORTATION COSTS BACK ON TRACK Offered by AFS Logistics Purvis Industries, a distributor of industrial products, did not have an eective way to validate whether it was being overcharged for shipments or if its rates were competitive. AFS Logistics outfitted Purvis with a robust audit process to ensure accurate, ecient invoicing. AFS also implemented a transportation management system and renegotiated the company’s less-than-truckload and parcel rates. Learn more by downloading this case study.
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BACK ON THE RAILS: HOW CAN SHIPPERS MAKE BETTER USE OF RAIL FREIGHT? GUEST: Eric Jakubowski, Anacostia Rail Holdings
Rail shipping hit the brakes during the pandemic and now finds itself in an uphill climb to catch up to its trucking counterparts. When it comes to things like finding rail- served sites, or managing transloading operations, the task seems daunting and complex. Eric Jakubowski of Anacostia Rail Holdings offers insight on how rail can get shipments back on the right track. bit.ly/SCI523ILPod
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May 2023 • Inbound Logistics 91
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