COMPUTER VS. OUR RATE STRUCTURE

Here is described a method for handling large quantities of paper work and some tedious jobs that are time consuming. In fact these types of jobs are increasingly hard to fill. They are not attractive. The system provides daily audit of 85 percent of the outbound freight bills received. Some of the remaining are audited manually if the need arises. This daily audit has generated measurable savings of one percent of the freight bill. It allows correction of billing errors prior to payment by means of the exceptions reporting system. Classification errors have been eliminated by the use of a preprinted bill of lading. Each product is classified under the Standard Transportation Commodity Code (STCC) in its seven digit format. In this system, three additional digits have been added for specific product characteristics. Errors in rate selection and extension have been eliminated. These two steps are the largest sources of error occurring on 34 percent of the freight bills the system processes. What is described here is a responsive system that contributes substantially to distribution management techniques. It is unique in the manner it reproduces the regular traffic procedures on the computer. It is significant in the manner it provides information to better manage the company's distribution activities. Documented savings run to about $1 million on a total company freight bill of about $100 million a year. In addition, undocumented savings are estimated to be another $2 million a year.

  • Corporate Authors:

    Industrial Publishing Corporation

    614 Superior Avenue West
    Cleveland, OH  United States  44113
  • Authors:
    • Carman, J R
  • Publication Date: 1974-12

Media Info

  • Features: Figures; Photos;
  • Pagination: p. 62-65
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00084606
  • Record Type: Publication
  • Source Agency: Industrial Publishing Corporation
  • Files: TRIS
  • Created Date: May 1 1975 12:00AM