From uncertainty to full control over freight costs
"FreightSolution is completely neutral and presents both the advantages and disadvantages of different freight agreements. This allows us to choose freight agreements based on factors other than just price."
About F&H
F&H Group A/S is Scandinavia's leading brand house within "Kitchen Living Dining" and has more than 15,000 items distributed across 40 major brands such as Morsoe, Lyngby Glas and Hoptimist.
Company
Home & Living
Website
From random checks to systematic control
F&H A/S previously had a challenge with checking their freight invoices, as with large volumes of outgoing shipments, it was not practically possible to check all invoices thoroughly.
‘Before Freightsolution, random checks were carried out on freight invoices for outgoing shipments,’ says Ruddi Vestergaard Nielsen, Logistics and IT Director at F&H A/S.
However, the random sampling method meant that only a small proportion of invoices were checked, leaving a significant number of invoices unchecked. This created uncertainty as to whether they were paying the correct prices in accordance with their freight agreements.
Automatic checking of all invoices
F&H therefore chose Invoice Audit, which automatically checks all invoices against their freight agreements. The results were immediate – Invoice Audit has found several errors on invoices that do not comply with the freight agreements, including errors in connection with benefit calculations and surcharges.
These errors were exactly the type that had previously gone unnoticed in the random sampling system. Now, F&H is automatically notified whenever there is a deviation from their agreed prices, giving them full control over their freight costs.
At the same time, implementation has been painless. F&H finds the FreightSolutions online platform easy to use, and the company is particularly pleased with the sparring with the logistics specialists, whom they describe as responsive to their ideas and needs.
“I would like to recommend FreightSolution, which is completely neutral and presents both the advantages and disadvantages of the various freight agreements. This allows us to choose freight agreements based on parameters other than just price.”
- Litha Kjeldsen Thomsen, Freight Forwarding Manager, F&H A/S
Neutral advice creates a better negotiating position
In addition to Invoice Audit, F&H has also received assistance with Tender to compare transport offers.
For F&H, it was not just a matter of finding the cheapest solution. With their wide product range and many different delivery requirements, several factors had to be taken into consideration.
‘I would like to recommend FreightSolution, which is completely neutral and presents both the advantages and disadvantages of the various freight agreements. This allows us to choose freight agreements based on parameters other than just price.’
The neutral approach means that F&H can look at service level, geographical coverage and reliability alongside price. This gives them the full picture before deciding which carrier best suits their needs.
Next step: even better integration
F&H is not done optimising its freight processes. The company already has plans to expand its use of FreightSolution with additional features.
Spot Request is next on the list – a feature that allows F&H to quickly obtain price quotes for ad hoc shipments without having to go through lengthy processes of contacting multiple carriers.
In addition, F&H is looking forward to being able to transfer freight costs directly to their ERP system with Data Export. This will give them even better integration between their logistics and financial systems, so that freight costs automatically become part of the overall financial overview.
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