Financial officer

It takes forever to distribute transport costs to the correct units internally

In order to gain better control of our transport costs, we decided a while back to consolidate all costs at our head office unit, which means that all invoices land in my inbox. That’s all well and good, but I then have to distribute the costs to all our different sites and subsidiaries. I don’t think I’ve got it right even once. Either a subsidiary ends up being charged too much, or the cost bypasses them completely and winds up back with us at head office. And then to check all these different lines? To find out what’s been debited correctly and what hasn’t? I don’t have anything to compare with. Our transport costs are higher than what we actually invoice our customers, so we’re generating a financial loss. Why?

Let us help you

Centralising transport purchases opens the door to significant savings, both as regards the transport expenses themselves and through more efficient processing. However, this approach also entails a number of challenges. For example, a large company with numerous sites and geographically separated units has to work out how to distribute the transport expenses between multiple cost centres.

The first thing you can do is ask your carriers for help. Some carriers can (and are happy to) group their invoices and invoice specs. Unfortunately, it is rarely the case that all carriers use the same system, unless you are an extremely big transport purchaser with the commercial muscle to set out stringent demands for all your carriers. Another way is to come up with solutions in Excel or your ERP to deal with this issue, because doing it manually is extremely time-consuming and often results in errors. A third approach is to ask your logistics provider to help with this issue.

The whole area of transport costs is something of a jungle for most people. Having a systematic and detailed approach for checking invoices is the crucial first step to taking control of your transport expenses. We recommend the following steps:

  1. 1. Check the terms and conditions of your freight agreements
  2. 2. Calculate what the freight should cost – so you have something to compare the invoice with when it arrives
  3. 3. Identify and analyse the non-conformances you find in the invoice
  4. 4. Deal with the source(s) of the non-conformances; it is often in the processing itself, but sometimes it’s with the carrier

Our solution

Globl Invoice Control is our service for everything that has anything to do with receiving invoices, checking and distributing them – or, if you prefer, dividing up transport costs.

We receive your invoices in electronic format from the carriers, and then check each individual line on the invoice (one line corresponds to one shipment) against the shipment price that vChain calculated based on the weight and volume information stated for the shipment.

Once we have done this, the invoice is forwarded for payment. We can divide costs up according to how you want to code them; we can even use your account numbers (how you book freight) and apply them as item numbers to make it simple to book the right sum to the right account.

If your organisation contains different units that are only to pay their own costs, we can divide the total cost up and invoice each unit separately on its own terms and conditions – in foreign currency, for example. We can consolidate all your transport invoices into a single monthly invoice, balanced, checked and ready for payment.

So forget all your worries and concerns about checking transport invoices. We’ll do everything for you.


Invoice control

What is MAUT? And what’s demurrage? Do you feel you’re getting lost in the jungle of transport invoices? Or are you simply unable to keep track of them? Let us handle the work of identifying non-conformances so you can sort them out. You can also let us do that work, too.

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Do you have any other queries, would you like to talk a bit of supply chain, or are you wondering what else we can do to help? Then use the button below to book a meeting with us, and let’s see what we can come up with together!

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