Transportation costs are rising
Runaway fuel prices, inflation, and inventory carrying costs contributed to logistics costs rising 7% in 2007 to $1.4 trillion, or 10.1% of GDP. Analysts expect these trends to continue over the next few years. Executives must implement cost reduction strategies now to offset profit erosion.
Businesses lack transportation cost controls
In 2007, although transportation accounted for an average of 62% of logistics expenditures and over 6% of GDP, most businesses have not implemented controls to effectively manage spending. As a result, transportation bills are bloated by as much as 20% due to poor decision support, lack of cost accountability, and inability to manage carrier performance.
Disparate systems fragment processes, obscure visibility
The proliferation of disparate IT systems and carrier-provided technology over the years has automated specific business functions, but has left managers with a fragmented view of transportation costs and processes. Many carriers offer free shipping management systems, but without coherent visibility of transportation information across all modes, businesses are unable to implement spending controls necessary to fully realize savings.
AgileElite enables transportation spend management
AgileElite is a suite of Enterprise Shipping Management solutions, designed to provide businesses with visibility and control over all transportation processes, from purchase to payment. Available via on-premise or on-demand deployments, AgileElite helps businesses manage transportation spend, reduce regulatory compliance risks, and streamline shipment processes.