Robert Kostelny | AllGreen Supply Chain

Outsourcing: The Cure For Freight Payment Frustration

Robert Kostelny — Wed, 22 Jan 2020 20:40:57 +0000

Payment of freight invoices is a critical function. If it is not managed properly, it can cost a company annually thousands of dollars in just late fees alone. However, today’s businesses are trying to do more with less, especially when it comes to its number of employees. And, with less staff and an increasingly complicated work environment, outsourcing freight payments may just be the answer.

Why the Name of the Game is Outsourcing

The shipment of goods can be one of a company’s largest expenses; therefore, it is key that best practices are implemented to achieve efficiencies and to ensure costs are kept in line with expectations. The top reasons to outsource to a third-party company are:

Avoid Late Fees

Accounts payable staff handle invoices from all types of vendors. All vendors, including shippers, have their own payment terms. Companies, however, often have general payment terms of 30, 45 or even 60 days, which are used no matter the invoice that is being processed. This can result in thousands of dollars in late fees annually. For example, one major shipper charges a six percent late fee even if payment is received only one day late.

By outsourcing your freight payments to AllGreen, late fees will be eliminated. We deal with shipping companies daily and carefully track each carrier’s payment terms. Our team knows if a shipper starts the invoice payment clock ticking based on invoice date, receipt date or ship date. This in-depth knowledge can be critical to saving you thousands of dollars each year. For example, AllGreen structured a pre-payment agreement with one client, which resulted in the elimination of late fees and an annual savings of $13,000.

Eliminate Costly Manual Touches

Processing freight invoices is a necessary but costly activity for companies. Data entry is a key component of processing freight invoices, much of which is done manually and is therefore, error-prone. Additionally, data entry jobs have a high turnover rate, making it difficult to achieve long-term efficiencies. With the many costs associated with accounts payable functions, processing just one invoice can run from $7 to $20.

AllGreen manages freight payments for hundreds of companies every year. Our fine-tuned payment process reduces the number of manual touches and errors, which can mean dramatic cost savings for our clients. On average, 50 to 90 percent of the processing cost of every freight invoice is eliminated.

Achieve Efficiencies

Along with processing freight payments, come the tasks of GL (general ledger) coding and auditing. Both these functions can be quite burdensome if staff are not properly trained. Incorrect or lack of auditing can result in the loss of thousands of dollars. Late deliveries are often not discovered in the required timeframe in order to receive valuable credits while incorrect GL coding can result in other issues such as inaccurate tax reporting or erroneous data.

Many companies hire AllGreen for auditing initially. However, these same businesses often upgrade to our all-in-one solution of auditing, coding, and payment processing. With our skilled expertise, companies experience efficiencies they were unable to achieve with in-house resources. We also provide comprehensive reports, which are conveniently sent to clients in a weekly email. Furthermore, companies receive a bundled rate, making it not only more efficient but also more cost-effective.

AllGreen: Your Outsource Partner

In the right situation and deployed wisely, outsourcing can be a fantastic way for business owners to improve efficiencies and bolster their company’s bottom line. However, it is key to hire the right outsource partner, especially when it comes to the critical area of freight payments. A third-party partner should ensure your business

· Avoids late fees

· Eliminates costly manual touches and

· Achieves efficiencies

The AllGreen team realizes the impact freight payments can have on a company’s financial situation. If not managed properly, the results can be devastating. As an outsourced partner, the AllGreen team will use its years of experience to achieve the best possible outcomes for your business. To learn more about our services, contact us today at info@ag-sc.com or 847-531-2209.

The post Outsourcing: The Cure For Freight Payment Frustration first appeared on AllGreen Supply Chain.

General Ledger Coding May Just be Your Answer to Freight Invoice Issues

Robert Kostelny — Tue, 12 Nov 2019 14:08:59 +0000

Are you looking for a better way to organize your freight invoices or to keep track of the amount of money your company spends on them? General ledger (GL) coding may be the solution. A general ledger (GL) code is a pre-determined string of alphanumeric characters assigned to each financial entry in a business’ ledger. With general ledger coding, financial reporting is much more precise. And, it is particularly useful for properly categorizing the many components that comprise freight invoices.

GL Codes – The Great Identifiers

Companies of all sizes use GL coding of freight invoices, but it is especially useful for mid-size to large businesses or those with over a $100 million in annual revenue. Start the GL coding process by looking more deeply into how freight costs are associated with the different departments and functions within the company. To do this effectively, you should work closely with the accounts payable department and the transportation group to identify the business rules and logic to use for coding shipments. These are unique to every business.

GL codes can become quite complex strings, but they help to allocate shipping expenses correctly because of the many different components identified. They not only categorize items correctly, but they also determine the proper department to bill. Some freight invoices can have four to five GL codes associated with them. Below are just a few examples of the key parameters that can be identified with GL codes:

– Freight Type
Freight can be classified as outbound or inbound. Proper GL coding can help to identify if inbound freight should be assigned to inventory or production. While outbound freight can be classified as a finished good or as being sent to a third party.

– VAT
VAT or valued-added tax is defined as a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to point of sale. The VAT amount paid by the user is on the cost of the product minus any material costs used in the product that have already been taxed. VAT is a reimbursable expense. It is important to properly identify VAT because there are tax implications.

– Duty
Duty is a tax levied on imports (and sometimes on exports) by the customs authorities of a country. A customs duty is based generally on the value of goods or upon the weight, dimensions or some other item criteria. Unlike VAT, duty is a tax-deductible expense. And, there are different duty implications depending upon the stage in the customer lifecycle.

– Warranty
Warranty is another item that can be tracked with GL coding. It is critical to track warranty parts because it affects duty implications. For example, a company cannot charge duty for the return of defective merchandise that is to be repaired and sent back to the customer.

Benefits of GL Coding

General ledger coding can become quite complex, and it is ever changing as companies build on logic in order to accommodate future shipments and/or new vendors, etc. However, GL coding also offers many benefits as demonstrated below:

– Time Savings
Tremendous efficiencies can be experienced by GL coding, especially as it relates to data analysis and reporting. By simply searching for a GL code, you can determine the number of warranty items, the amount of inbound freight that is attributed to production and other information as defined by your company rules.

– Accuracy
The many different parameters that GL codes include can lead to an invaluable level of accuracy. You can determine exactly which departments should be charged back or how profitability is being impacted. GL codes can even help a company determine its cost of goods sold (COGS) much more easily and accurately, which leads to much better-informed company decision making.

– Proper Tax
Reporting By using GL codes, you can be more confident about your tax reporting. For example, GL codes can properly classify VAT vs. duty to help prevent any tax reporting issues. With GL codes, your company can be placed in the most favorable tax position.

Looking to Outsource Your GL Coding?

GL coding does offer many benefits, but if your company does not have the proper resources to allocate to this task, AllGreen can help. By outsourcing GL coding to AllGreen, one client recently saved over 1,200 hours of valuable management and accounts payable staff time. We will work directly with different internal departments to ensure we identify and define the rules and logic that best address your GL coding needs. As your company experiences changes, AllGreen will update your database of rules for proper classification. And, with our proven system, you will be assured inaccuracies caused by employees’ manual input will become a problem of the past. To learn more, contact AllGreen today at info@ag-sc.com or 847-531-2209

The post General Ledger Coding May Just be Your Answer to Freight Invoice Issues first appeared on AllGreen Supply Chain.

Learn How to Properly Audit Your Freight Invoices

Robert Kostelny — Mon, 21 Oct 2019 11:35:22 +0000

Is Your Company Leaving Money on the Table? Learn How to Properly Audit Your Freight Invoices

Freight invoice auditing may be one of the most cumbersome, but also one of the most crucial tasks that should be conducted on a regular basis, especially if your business ships thousands or even hundreds of packages per week. Based on AllGreen’s experience working with shippers and carriers, we have identified the top reasons why successfully auditing freight invoices can be so difficult:

The employee assigned to auditing freight invoices often has many other responsibilities that seem to be much more important or he/she is not well-trained on the auditing process.
The carriers do not make freight invoice audits easy either. Data is sent in a PDF, along with unformatted excel documents, containing lines and lines of shipment records.
An employee must scroll through this list and enter tracking numbers one by one into the carrier’s website.
There is a limited window of opportunity to file a claim.
Staff must be knowledgeable about shipping guidelines in order to determine if a legitimate claim can be made, including guaranteed times, fluctuations in commitments from carriers, and monitoring credits and exceptions.

However, with proper knowledge and resources, you can avoid leaving money on the table.

Turn Your Next Freight Invoice Audit into a Financial Win

According to market research up to 30 percent of all freight invoices are incorrect. To help ensure you are not missing incorrectly billed freight invoices, below are a few guidelines to keep top of mind when conducting your next freight invoice audit:

Time is of the Essence

Major carriers, such as UPS and FedEx, offer a service guarantee that if a package does not arrive on time, the business receives a refund. However, in order to receive this credit, the shipper must be proactive and request it. And, that refund request must be made within 15 days of the scheduled delivery date. Unfortunately, these carriers only issue invoices weekly so several days may be lost before the late shipment is discovered; therefore, it is critical to conduct freight invoice audits promptly.

Legitimate Reasons for Delayed Deliveries

Approximately, 98 percent of FedEx and UPS shipments are delivered on time. However, the remaining two percent, which are delivered late do not necessarily result in a refund even if the correct process is followed in a timely manner. On average only about 1.5 percent of late deliveries are credited. You may ask what are the legitimate reasons for delayed deliveries that result in a denial? Weather is most often blamed for late deliveries, and unfortunately, it cannot be used to obtain a refund. Other legitimate reasons that result in rejected claims are Acts of God, civil commotion, war and terrorism.

However, some reasons for rejection are open to interpretation. For example, mechanical breakdown may be cited as the cause for a late delivery. With this reason, you can argue that if the equipment had been maintained properly or a contingency plan was in place then the delay would been prevented.

Residential vs Commercial Classification

There are different shipping rates for residential vs commercial destinations. These rates are different because residences have a much lower delivery density. It may take four to five minutes to deliver a single package to a residence while it may only take two minutes to deliver a package to a commercial property, such as a mall or office building. Multiple packages are often dropped off at one commercial location at a given time, making it a much easier and quicker delivery. Home businesses still are billed at the residential rate, but properties, such as churches often fall into a gray area. It is critical to know how shipments are being classified. Shipments to residences often cost three to four dollars more than those sent to commercial properties. This can really add up if your company is shipping thousands of packages per week.

Address Corrections can be Costly

It is imperative that the correct shipping address is used. Unfortunately, even a little variation can result in a disproportionate extra charge to the tune of $16.40 per package. And, this fee is expected to increase again next year. The charge can be contested, but unfortunately, the recovery rate is only about 15 percent.

Save Time and Money with AllGreen

Auditing freight invoices can be more expensive than you may think if your staff is not properly trained and the process is just considered another burden on the company. With our proven system, AllGreen can be the perfect resource to turn this burdensome task into bottom line savings for your company. Recently, we worked with a client who spent $500K per year on international air and domestic air shipments with the two major carriers. However, many of their shipments were delivered late. With our audit process, we were able to recover $14,000 in refunds to their account.

AllGreen will work with you to acquire the necessary carrier data, which we then analyze through our comprehensive digital solution. If any questionable deliveries are discovered, we will work directly with the carriers to ensure your company is issued a refund. Any credit is sent directly to your company. Your savings can be reported to you as often as you would like in weekly, monthly or quarterly reports. Don’t lose another dollar to incorrect freight invoices, contact us today at info@ag-sc.com or 847-531-2209.

The post Learn How to Properly Audit Your Freight Invoices first appeared on AllGreen Supply Chain.

Shipping High Street Value Commodities can be Risky Business

Robert Kostelny — Thu, 22 Aug 2019 16:39:02 +0000

Shipping High Commodities

In 2018, a little over 293 million Samsung smartphones were shipped while Apple was not far behind with approximately 212 million of its smartphones distributed across the globe. These tech industry giants seem to have mastered shipping high street value commodities, which is not an easy accomplishment today. However, the category of high risk commodities encompasses many types of merchandise, from everyday items, such as smartphones, televisions and refrigerators, to one-of-a-kind artwork, fine wines and pricey watches. These products are not only expensive, but also often fragile in nature; therefore, further complicating the shipping process. There are shippers who specifically cater to transporting exclusive items, such as antiques, while many other shipping companies deal with the bulk of items classified as high street value commodities.

Threats

High street value commodities are particularly susceptible to risks. Many of these threats have existed for years while others have come into play more recently. Below are two major threats that shippers are concerned about today:

Piracy

Piracy has been around for centuries, and in recent years it has staged a comeback. Ships traveling through the waters around Asia and West Africa have experienced the largest number of pirate attacks. However, not only are ocean carriers impacted by piracy, but also air freight companies experience this same issue, which is called air piracy.

Cyber-Attacks

Cyber-attacks are the newest form of piracy that is hitting ocean and air freight carriers. Today’s cargo ships and aircraft are more connected than ever because of new IoT (Internet of Things) applications. However, this enhanced connectivity has made it possible for hackers to re-route shipping vessels, resulting in changes in delivery times and locations of containers. Sophisticated cyber-attacks are the second major risk for airlines. Only natural disasters surpass it to top the list. These types of attacks can interfere with aircraft systems, (in flight or on the ground), control the airplanes, and even ground entire fleets.

Packaging

When shipping high street value merchandise, packaging is particularly critical not only to ensure its good condition, but also to help protect it against the types of threats mentioned above. Labeling is a crucial aspect of packaging. According to transportation consultant, Jeremy Carley, “When transporting high street value commodities, many companies, such as Apple, conceal the contents of their packages. This is particularly critical when crossing the belts and delivering these valuable items.”

Since many products are shipped overseas, crating and binding merchandise on a pallet is important. Technology products, such as televisions, have many components inside. The tiniest bit of jostling during transit could prevent it from working.

RFID – Radio Frequency Identification, plays a critical role in the packaging of high street value commodities. In particular, larger carriers are utilizing this technology. By incorporating RFID tags into shipping container pallets, or other reusable assets, shippers have immediate, real-time information regarding not only a product’s location, but also its quantity, history and destination. Not only are logistics simplified, but the safety of the shipment is further enhanced.

Adequate Insurance Coverage

With high risk commodities, it is particularly important to select the right type of insurance company and coverage. Just like specialized shippers, there are insurers that deal specifically with high risk commodities. It is key to select a rated A insurance carrier. And, in terms of coverage, consider an all-risk policy, which ensures there are no gaps in insurance. Also, full replacement value on a high risk shipment should be taken into account. This is especially important if you are using one of the major shippers, such as FedEx or UPS, because the maximum declared value per package is $50,000.

Worried about Shipping High Risk Commodities?

When managed properly, shipping high risk commodities should not keep you up at night. As a 3^rd party logistics company, AllGreen, has the proven track record and professional experience to help ensure your high street value items are shipped correctly. Our team has worked for national shipping carriers; therefore, we created a solution that takes care of any gaps in coverage. Plus, our policy underwriter is rated A++ by A.M. Best, making it at the top of its class.

For further information about our services, contact us today at info@ag-sc.com or 847-531-2209.

The post Shipping High Street Value Commodities can be Risky Business first appeared on AllGreen Supply Chain.

The Ins and Outs of Declared Value

Robert Kostelny — Wed, 07 Aug 2019 13:31:08 +0000

The Ins and Outs of Declared Value

Shipping is big business. In fact, just UPS, FedEx and USPS (United States Postal Service) combined shipped over 16 billion packages in 2017. When shipping a package, the term, declared value, is commonly used. Often, senders mistakenly think declared value and shipping insurance are the same thing. However, this is quite a misconception. It is key to understand the definition of declared value and how to overcome coverage gaps to ensure your shipping needs are adequately met.

The Definition of Declared Value

Declared value is optional coverage businesses can place on a specific shipment in the event of loss, damage or theft due to carrier negligence. The level of protection is based on that stated value. However, as mentioned above, declared value is not insurance; therefore, there is no guarantee you will receive funds if something does happen to your goods. To be clear, declared value does not cover Acts of God, War or Terrorism.

Coverage Hurdles

If your package is not delivered in good shape or is not delivered at all, an investigation will occur based on the declared value. However, there are many hurdles that must be overcome before any funds are sent to you. The largest hurdle entails packaging. It is critical to ship any items in the prescribed and tested packaging offered by the shipper. Even if you pack an item in a shipper’s package, it is best to take it to a shipper’s facility and have it tested prior to shipping. This will help ensure maximum reimbursement in the event of an investigation.

Claim approval for damaged packages is very low. If a package is stolen, there are many hurdles that you must go through to prove the theft happened. However, claim approval is a little higher than for damaged packages. When a package is classified as lost, claim approval is even better. If you do receive funds for the package and it is found within three to six months, the package will be shipped to you and the carrier will request the money be returned to them. However, this does not apply to perishable items.

Alternatives to Declared Value

If you have a business that ships packages frequently, it is critical to consider alternatives to declared value. Below are four shipment insurance options:

Packaging Insurance

The first option is transit insurance offered through a packaging insurance company. Typically, a business client pays an annual premium that is based on their history loss for the previous three to five years. If there are any losses, the types of claims will be taken into account. Next, the insurance provider will consider the packaging that is used and the type of merchandise that is being covered. There are various freight alternatives, ranging from air and ocean to LTL (less than truckload), small package and cargo.

General Liability Insurance

A general liability insurance policy can incorporate transit insurance too. This type of insurance is typically for ocean or air freight. It usually covers a large value, but also comes with a big deductible, which can be as high as ten thousand dollars.

Transit Insurance

Transit insurance is provided by a third-party company outside of the types of policies mentioned above. The previous two options may be more cost effective because transit insurance is just one component of the policy.

According to transportation consultant, Jeremy Carley, “Transit insurance companies such as UPS Capital, bring their own set of merits. For example, when working with other types of insurers, they first must rely on the approval process of the carrier before they can approve a claim for their client. Transit insurance companies can bypass this step.”

Self-Insure

The last option is to self-insure, which many companies are now implementing. “Companies conduct an analysis and put aside into a reserve an amount that is equal to merchandise that gets lost, damaged or stolen in the course of a year. These companies then pay themselves when merchandise falls into one of these three categories,” explained Jeremy.

We can Help You Navigate the Shipping Maze

Declared value is just a small component of today’s complicated shipping industry. It is key to consider the alternatives to declared value and implement the solution that best suits your business. As a 3^rd party logistics company, AllGreen, can help you navigate the complexities of insuring your goods.

If you’re ready to discuss the best approach for insuring your goods, contact us at info@ag-sc.com or 847-531-2209.

The post The Ins and Outs of Declared Value first appeared on AllGreen Supply Chain.

Data Series Part 3: What to do With Data

Robert Kostelny — Mon, 27 Nov 2017 07:00:32 +0000

This is the third blog in our three part series on data. Part One covered why data was important (blog link). Part Two covered How to Get Good Data (blog link). In this blog we’ll answer some of the questions that came up in the last blog and we’ll discuss what to do with data once you have it. Data is important because without it your company can’t make informed decisions. You get good data through your own historical sales numbers, and, most importantly, by asking for electronic billing and getting raw data from your carriers.

Challenges:
In our last blog we brought up some challenges you’ll encounter when it comes to effectively using data. For instance, how do you effectively analyze such large amounts of data on your own? If you subscribe to e-bills every week, you get files with hundreds or thousands of rows and columns of data and it is impossible to analyze it on your own. Shipping carriers offer data analysis tools, but they don’t give you the whole picture. Ultimately they are invested in growing their own business, not yours. UPS will not tell you when you could save money by shipping ground instead of air, or when you can combine packages to lower shipping costs. They only give you enough information so you feel informed, but are not dangerous to them.

Data Analysis Tools:
This is where AllGreen comes in. Throughout our history, we have developed data analysis tools that are meant to save you money. Where carriers obfuscate, we strive to give you clarity and help your business. AllGreen also offers software that allows you to get your data in one place. So often data is extremely fragmented making it impossible to see the whole picture. We remedy that with several solutions including Transportation Management Software (TMS). Our TMS and freight invoice auditing solutions bring all your data into one place and eliminate multiple rounds of data entry.

What Can Data Do For You?
Now that you have the data you need and the tools you need to analyze it, what can this data help you do? As we talked about in part one, the purpose of good data and good data analysis is to save you time and money. Throughout every step of your process, there are opportunities to save. By taking the raw data from your carriers and analyzing it, you will begin to see trends. It is in these trends that you will find opportunities to save.

Data analysis can show you:

The places where you’re sending multiple packages. Instead of sending three 5 lb. packages, you can send one 15 lb. carton.

How to make your shipping more effective. Where are you sending packages via air when it would be just as fast and far cheaper to send them via ground?

Where to move your distribution centers. Perhaps the place you have your distribution centers is not the most effective. By relocating a distribution center you could be closer to your customers, giving you a shorter transit time and lower transportation costs.

Analyzing Discrepancies
In the last blog we said that historical sales numbers aren’t enough. When used in conjunction with the carrier data, however, it can be a powerful tool. By analyzing your numbers up against the carrier numbers you can find discrepancies. When you see trends in this area, it allows you to make changes to more accurately charge your customers. If you are charging your customers for a 10 lb. package but FedEx is charging you for 14 lbs., you are eating this cost. When you analyze this, you can find ways to recover your shipping charges. This allows you accurately negotiate with your carriers and create an effective transportation plan that supports your organization strategy.

Your Centralized Decision Making Hub:
Let AllGreen bring the pieces together, consolidate and compress the information into one clean format, and create a centralized decision making hub for you. Helping companies save money is what we’re here for. We have all the necessary tools and experience analyze and consolidate your company’s data so you can make the best decisions possible for your company.

Summary:
Good data is important because it allows you to save money and make good decisions. You acquire good data through electronic billing, getting raw data from your carriers, and your own data collection. Once you have the data, you will need tools or resources to help you analyze it. This analyzation leads to actions your company can take to save money and make your customers happy.

Let AllGreen bring the pieces together.

The post Data Series Part 3: What to do With Data first appeared on AllGreen Supply Chain.

Data Series Part 2: How to Get Good Data

Robert Kostelny — Mon, 13 Nov 2017 22:22:37 +0000

In the last blog, we talked about why getting good data is important for your business. Many companies run their business with incomplete or bad data. As we covered last time, you cannot make good decisions with incomplete information. If you missed the last blog you can read it here: Why is Data Important?

How to Get Good Data
Now that you know why data is important, you’re probably wondering how to get the data your company desperately needs. The world of data is huge, and oftentimes overwhelming. It can be hard to know where to even start. This second blog in our three part series will focus on how to acquire good data. We will talk about the different ways that you can get the data you need for your company, as well as the shortcomings of each data gathering method.

Internal Sales Numbers
Many businesses get data through their own internal historical sales numbers. Your company has the data for your past shipments, including the size and weight of packages you’ve shipped and the states you shipped them to. This appears helpful, but it’s not, at least not on its own. There are far too many variables involved. You could take two identical packages and send them both to New York. Despite the near identical shipping conditions, the packages can vary in price up to 60%. Was the package going to a business in New York City, or a remote residential location in upstate New York? Factors such as these can dramatically change the price of shipping.

Internal Sales Numbers – The Problem
Historical sales numbers can’t give you enough information. What problems can this kind of information gap cause? It can cause you to lose money or even customers. When you don’t have accurate information, you may be overcharging your customers or undercharging and paying for shipping out of pocket. How do you solve that problem? More data.

Carriers
This leads us to our next method of data gathering: carriers. When you get data from your carriers you can get a much more comprehensive picture of the many variables involved. If getting data from carriers is so much more comprehensive, why doesn’t everyone do it? Electronic billing. Many companies still receive paper bills from their carriers. This makes data capture and analysis nearly impossible. When you sign up for electronic billing, along with your bill, you will receive a .csv file with hundreds of columns of data. It contains everything, the size, weight, region, service level, delivery surcharges, etc. By analyzing this carrier data, over enough time, you can start to see trends, and when you discover trends you can begin to make better decisions.

Carriers – The Problems
There are a few problems with this, however. Firstly, how do you analyze this data once you have it? The files you receive are massive and even if you knew what to look for it would be impossible to effectively find it yourself. Shipping carriers have billing tools that allow you to take the data they send you and run general reports. This seems like a good solution. The problem is that these carriers do not have your best interest at heart and they will only give you enough information to keep you from being dangerous.

Internal + Carriers
The two methods of data gathering are the most powerful when used in conjunction with each other. Your company’s internal data alone is not enough, but when combined with carrier data it becomes a great tool. By analyzing internal data and carrier data against each other, you can identify discrepancies that the carriers won’t tell you about, and save your company money.

Summary
To get good data you must be keyed into both the front and the back end—your own sales numbers, and the carrier information. Electronic billing is key; you cannot get the historical data you need without it. By combining internal sales data and external carrier data you get the kind of comprehensive picture your company needs to compete in today’s fast paced market.

In our next blog, we will talk about what to do with the data once you have it. We will talk about how to analyze you data as well as the solutions to many of the challenges data presents.

The post Data Series Part 2: How to Get Good Data first appeared on AllGreen Supply Chain.

Data Series Part 1: Why is Data Important?

Robert Kostelny — Mon, 23 Oct 2017 15:29:37 +0000

Over the course of the next three blog posts, we will be talking about a topic that impacts every area of your business. That is the topic of data. In this blog post, we will be talking about what data is and why good data is important for your business. The next blog will be focused on how to acquire good data and how to determine what information is useful and what is superfluous. In the final blog of the series, we will be talking about what to do with data once you have it.

What is data and why is it important?

Data is, at it’s most basic level, information. It is the information about every step of your company’s process. We live in the information age, and we have access to more data than ever before. This may feel overwhelming at first, but when you learn to leverage all of the information flowing in and our of your company, you are set up to surpass your competitors and save significant resources—from tens of thousands, to hundreds of thousands, to potentially even millions of dollars.

Data allows you to make good decisions

Data is truly more than the sum of its parts. It is the driving force behind your company’s decision-making engine. The profitability of your company is determined by every decision you make, and it is impossible to make good decisions without good data. Imagine you were buying a new vehicle and you were trying to choose between two cars that looked the same from the outside. Car A costs $10,000 and Car B costs $12,000. If you don’t have access to information about the upgrades and features of each car, how can you know which car is truly a better value? Without all the appropriate information, it is impossible to make a good decision. Making business decisions is no different. How can you know the best thing to do for your company if you do not have access to all of the data?

Data drives change and improvements.

This is important because the world we live in is changing rapidly. We live in an instant age. The growth in e-commerce through the last 10 years has changed how consumers expect their products. Even if you aren’t dealing directly with companies like Amazon; two-day, next-day or even same-day shipping has become standard. This requires agility in your supply chain. Customers expect their products faster than ever. This requires you to make good decisions that align with the quickly changing landscape. The only way to meet this ever-increasing demand for speed is to have good data. Efficiency is key, and without good data, there is no way to ascertain your level of efficiency.

Data creates opportunities for efficiency and profit.

Every process within your company is an opportunity. Leveraging the data you have allows you to improve these processes. Imagine if you had a process that that takes place hundreds of times per week or even thousands of times per day. What if you saved $0.01, $0.10, $1 or even $10 per process? Throughout the course of a year, those small changes will have a significant impact on your company’s bottom line.

Data allows you to see trends.

More data—as long as it is the right kind of data—is better. Having a large timeframe of data to pull from allows you to see trends in your business. It shows you not only the changes you need to make, but also how changes you’ve made in one area affects other areas of your business. The unique pieces of your business and your process do not exist in isolation. Every decision you make creates trends in other areas of your business, and data allows you to see these clearly.

Data helps you identify ways to serve your customers more effectively.

Many companies’ decisions depend on their carriers’ analytics. If you’re doing this, you are already behind the curve. Shipping carriers provide good raw data, but they have a vested interest in keeping you inefficient, and they can never give you the complete picture. They don’t know your market, your customers, or your distribution like you do. Because your profitability comes down to the efficiency of each process, and decisions must be made quickly, you cannot afford to be operating with incomplete data. Without all the information, you will not know how to serve your customers well. We will cover this more in depth in the next blog post.

In Summary:

Collecting and using good data is one of the most important things you can do for your company. It drives informed decision-making, as well as allowing you to make decisions quickly, it drives profit, it creates opportunities for positive change in the processes your company does on a daily or weekly basis, it shows you business trends and it allows you to serve your customers’ needs. Without data, your company is stumbling through the dark. When you utilize all of the information available to you, your company is released to operate at its highest potential.

Our next two blogs will focus on the practical steps your company can take to get good data and the response your company should have to the data you acquire.

The post Data Series Part 1: Why is Data Important? first appeared on AllGreen Supply Chain.

Why Ocean Containers Get Lost at Sea?

Robert Kostelny — Wed, 27 Jul 2016 21:15:03 +0000

Why Containers Get Lost at Sea?

The post Why Ocean Containers Get Lost at Sea? first appeared on AllGreen Supply Chain.

United Parcel Service Tests Saturday Delivery as Online Shopping Demand Surges

Robert Kostelny — Tue, 19 Jul 2016 20:39:53 +0000

http://www.supplychain247.com/article/ups_tests_saturday_delivery_as_online_shopping_demand_surges

The post United Parcel Service Tests Saturday Delivery as Online Shopping Demand Surges first appeared on AllGreen Supply Chain.