Tightening regulations, especially around privacy, are likely to impact the future freight bill audit and payment industry, says Deanna Kaufman, vice president of product management with Körber Supply Chain Software. For example, shipments to consumers’ homes contain personally identifiable information. By marrying this information to shipment data, it may be possible to determine which households are receiving prescriptions. “There’s a potential for regulatory agencies in the coming years to influence how freight bill data is used, stored, and kept safe,” Kaufman says. Currently, many carriers and shippers work together through individually negotiated contracts. As technology advances, carriers likely will be able to leverage technology to determine the fullness of their supply chains at any moment, Kaufman says. They’ll be able to use this information to employ surge pricing. Along with potentially higher rates, billing may become more opaque. It’s currently not clear if a shipper or auditor will have enough information to determine how full a network actually was. “You may have to take the carrier’s word that their network is this full,” Kaufman says. While the industry faces challenges, the FBAP market continues to evolve and incorporate technology advancements. Providers are integrating big data, artificial intelligence, and machine learning to more effectively detect anomalies and provide shippers with critical information they can use to optimize transportation costs and improve operational efficiency, Burglechner says. The FBAP providers highlighted here can help shippers meet evolving challenges. A3 Freight Payment: Customized Spend Management Solutions The shift from reactive to proactive analytics is probably the most significant shift in the industry today, says Craig
Cameron, vice president of sales and marketing for A3 Freight Payment. And A3, which has earned a place on Inc. ’s list of the 5,000 fastest-growing private companies in the United States for two years, is a leader in this change. A3’s analytic solutions go beyond reporting transportation spend to enabling its clients to better manage their freight expense. “We have already captured the data,” Cameron says. “So, we can distill the information and show a client how their choices are impacting the company and how to reduce their costs over time. “A3 expands the traditional value proposition by applying AI and machine learning technology to the data captured from client systems, in addition to the freight audit process, to provide actionable intelligence that reduces costs by detecting anomalies and waste, detecting anomalies
identifies trends, and forecasts future expenses,” Cameron says. By integrating clients’ data into the process, A3 can offer even more granular insight to cost drivers at the business unit, client, sales territory, PO, vendor, order, and SKU level. A3 also can utilize this information to assist shippers in carrier selection, bid negotiations, scenario modeling, and network optimization. Many shippers turn to A3 for tailored transportation spend management solutions that incorporate advanced technology, industry best practices, and experienced customer service. In working with clients, A3 customizes its solutions to each client’s needs and goals, and seeks to form a collaborative partnership. The core of A3’s solution is freight audit and payment. However, A3’s technology and expertise support its spend management solution and enhanced ROI. “We integrate with our clients’ information systems and their transportation partners to aggregate a comprehensive data set that we then analyze to identify cost savings opportunities,” Cameron says. Once it identifies these opportunities, A3 can either hand off the knowledge, or can actively help the client pursue the opportunities and manage the ongoing process. A3’s freight bill audit and payment solution is designed to help capture the cleanest and most accurate data to support spend management. A front- end exception management approach ensures invoice data is captured one time and reflects the correct costs. That’s unlike short payment practices, which trigger balance and past due invoices that skew reporting. A3 supports the global audit of all transportation modes at the charge level, and the disbursement of payments in any currency. Dedicated account resources ensure clients and their logistics providers have access to knowledgeable contacts who can facilitate exception
A3 expands the traditional value proposition by applying AI and machine learning technology to the data captured from client systems.
CRAIG CAMERON Vice President of Sales and Marketing A3 Freight Payment
60 Inbound Logistics • September 2024
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