Electronic solution cuts average transaction costs by more than half – survey

Finding the right solutions always requires access to all the relevant information, and being electronically connected provides you with a sure and efficient source of everything that is required, according to Moira Ambler, business development manager of MSC Logistics. “The transportation and freight industry is a critical part of any country's economy,” she told FTW, “and the movement and storage of supplies and merchandise poses huge challenges in maintaining speed, safety and security.” This, she added, is where a company’s computer system comes into play. “Everyone in the office can access any files that are required anytime and from anywhere, simply by being electronically connected. It is a streamlined information source, and makes us all very knowledgeable. “It simply makes life easier and quicker.” The only stumbling block is the human element. Said Ambler: “Someone has to put the correct information in first, and it always allows for the curse of human failure.” A simple example of where there is an electronic solution for MSC Logistics is in the universal availability of shipping line manifests – a vital document in ship and cargo management. “Our manifest system is all electronically signed and very on the ball,” said Ambler. “And again, the important words are that it’s available to us anytime and anywhere.” Another indisputable advantage is in the costefficiency of a sophisticated computer management system. Ambler pointed to a study compiled by the German major in the European logistics industry, Deutsche Bank. “It indicated that invoicing, dispute resolution and payment processes represented a significant area of inefficiency and cost for the industry,” she said. “It found that there were an estimated 150-million invoice transactions processed a year for ocean shipping – with average costs ranging from US$20-US$60 per invoice, depending on the processes used. A vital finding by Deutsche Bank was that implementing an electronic solution could cut average transaction processing costs by more than half. “The report added that carriers also benefited from accelerated collection of their accounts receivable and improved working capital, making cash available sooner,” Ambler added. “Shippers and logistics providers profit from having a standardised accounts payable process for receiving, processing and paying all their invoices – improving visibility of their cash liabilities and providing a transparent dispute resolution process, all of which create efficiencies and save time for their staff.”