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Nextjet's informal research with business unit managers reveal that the combined capital associated with money that was not collected/billed/disputed in the logistics industry is estimated to be 1-5% of margins. This does not even account for the cost of capital that is tied to long order-to-cash cycle times. While that amount of variability is unacceptable in an operating environment that lives on razor-thin margins, it inevitably happens due to the following obstacles to improved visibility and streamlined processes:
Inability to capture an audit trail with the necessary execution-level detail - Understanding total landed cost will continue to be elusive if every cost (from added labor to parking/tolls) cannot be captured and integrated into a universal audit trail for every order at the line-item level.
Innacurate rates & policies - Misapplication of rates or order policies force companies to absorb losses incurred as a result.
Too many manual processes - The number of disparate settlement systems that must be coordinated within a distributed business environment has resulted in companies employing small armies of staff to deal with the problem, where the lack of automation further exacerbates the problem and erodes margins.
Nextjet components for efficiently and expediently managing the reconciliation and settlement of all charges on orders include:
NEXTPAY FOR AUTO-SETTLEMENT Nextpay is a complete electronic order-level costing and reconciliation system, with direct extensions to vendors that enable limited input for order-level charges.
Benefits:
Significant jump in accounts payable
productivity
Lower incidence of assessorial charges
Greater vendor loyalty through accurate and time-definite payment
Core Functionality:
Electronic vendor confirmation of all
service charges at the time of order assignment, based on agreed
upon rate profiles loaded into system
Limited additional/assessorial charge
generation by vendors, specific to order type
Defined time window for vendor to
petition any additional/assessorial charges
Order level vendor charge review and
authorization for payment-line-item identification of charges
beyond pre-confirmed total
Automated vendor payable and account receivable generation into host financial system
NEXTJET RATING ENGINE Integral to the generation of precise costing and pricing for any order is the Nextjet Rating Engine. The Nextjet Technologies Rating Engine models the universe of rating permutations across a wide array of transportation and logistics services. The Nextjet Rating Engine can incorporate:
Transportation Management
