Packard Logistics Success Story
SHIPS Logistics Management Workflow Solution Leads to Increased Revenue, Provides More Control, Eliminates Paperwork, and Reduces Labor Costs
While experiencing accelerated growth, Packard Logistics found itself challenged to keep up with the documentation and information necessary to support its customer base and manage its national carrier network. With so much additional business came a deluge of paperwork. Packard processed about 3,600 documents per week as a result of its 450 weekly loads delivered. Additionally, it needed to be able to track and manage the more than 10,000 documents associated with its network of approximately 2,700 active carriers at any given time.
Packard Logistics implemented the SHIPS Logistics Management Solution to track and manage carrier information and documentation. The company extended the value of the software by integrating it with SHIP’s billing and settlement workflows and Packard’s existing dispatch and accounting systems. All of these applications are supported by EBE’s imaging solution which scans, indexes and forwards the documents to the appropriate workflow queue.
Automated Contract Management Enables Increased Load Volume
Each active carrier’s associated documentation consists of approximately 35 documents, all of which need to be continually reviewed for expirations, violations, insurance certifications and more. This process was previously done manually by Packard personnel. With SHIPS Logistics Management workflows, documents are now entered into the system and automatically queried on a weekly basis. Based on the expiration date and document type, qualifying documents, along with the carrier performance report, are gathered and routed to the queue of the person responsible for managing that carrier’s performance. Based on Packard’s business rules, the appropriate action is then executed. For routine processes, the system handles them automatically. The processing agent will now spend their time only managing the exceptions. Because personnel no longer needs to review each carriers profile manually, Packard is able to match loads and get more drivers on the road quicker. Automating this process has had a significant impact on increased load volume for Packard.
Speedier Carrier Settlements Leads to Increased Revenues
Packard now offers a “Quick Pay” program to its carriers. For a 2.5% fee, the Quick Pay program guarantees carriers next day payment on delivered loads that have all of it’s paperwork turned in. “Packard would not be able to do this if we had to manage all of the documents manually. But, because the system acts as the process manager, knowing what documents are in, and what the defined business rules are for each carrier, Packard is able to automatically pay those carriers without any incremental cost,” said Christopher Checca, Packard’s Director of Information Technologies. This program has resulted in approximately a 1% net increase in revenues.
Billing Productivity Reduces DSO
SHIPS Accounts Receivable workflows for billing enables Packard Logistics to complete the daily billing process for all pending bills the same day. The rendition printing capability automatically gathers, matches and validates all of the supporting documentation for each order, merges it with the bill and then sends it to the appropriate sales agent. Prior to implementing SHIPS, clerks were sorting, copying and faxing/printing the invoices manually. At the end of the day, there were always bills waiting to be processed and sent. The reduced processing time has led to a reduction in Packard Logistics DSO.
Automation and Exception Management Improve Productivity
Because Logistics Management workflows automate the manual routine tasks, the staff now only monitors and responds to the exceptions, resulting in significant productivity and service improvements for its customers and carriers. Staff is alerted when there is missing paperwork or when a carrier’s regulatory documents need to be updated. If a carrier’s documents have expired, the workflow will automatically prohibit that carrier from being dispatched until the documents are renewed.
Visibility and Accountability Strengthen Carrier Network and Increase Customer Satisfaction
All documents and activities are time and date stamped so Packard can track and monitor statistics of its carriers’ performance. Carriers are now rated based on factors such as responsiveness in returning rate confirmations, claims and FMCSA standards. This provides Packard with a high degree of confidence when assigning a carrier to deliver its customers’ freight. SHIPS also provides visibility to all dispatch activity. At-a-glance, personnel can instantly see where a load is assigned, its status and scheduled delivery time.
Packard Logistics was growing rapidly, with transaction volumes increasing by 150%. It needed a more effecient way to manage and process the mounting paperwork to support its customers and carrier network
SHIPS Logistics Management for contract management, Accounts Receivable/Payable for billing and settlements, and Dispatch for load assignment and visibility
Increased revenue from 150k to 450k per week with one additional processing clerk
Implemented "Quick Pay" program for carriers generating a 1% increase in revenues
Reduced billing cycle time led to reduced DSO, resulting in same-day processing of all billable loads
Improved employee productivity by automating routine tasks, now managing exceptions only
Improved customer satisfaction through higher confidence levels of carrier network