Rate engines are a necessity in the shipping industry. However, it is also crucial to do some cleanup of these systems regularly, especially when changes are made to your route options.
Recently, during a freight cost audit, our team discovered an error that cost a shipper over a hundred thousand dollars due to an old route that was left in the rate system. Since the rates had expired under this route option and the freight had already moved, there was nothing to be done.
At AMTR, the education process is just as important as the recovery. By bringing the matter to the client’s attention, they will be able to save future monies by not choosing the incorrect route when submitting instructions to the carrier. When shippers decide in the course of business to offer traffic to competitive carriers, they should consider removing and archiving the prior carrier rate options from their rate engines. Freight cost can be negatively impacted if the expired rate is chosen. The end result would be to rely on non-negotiated public rates, which could add up quickly. Then, the risk of someone choosing the wrong option and costing hundreds of thousands of dollars could be avoided.
AMTR strives to educate shippers in these types of situations to help avoid overpaying freight in the future.
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