“We believe in a world where rate data is seamlessly transmitted between carriers and their customers, thereby removing manual work and errors“– PLS
Indeed, manually updating contracts is a costly task in terms of time and labor for many businesses. Rates could be applied or entered into systems incorrectly which in turn could result in a domino effect for businesses as they pass the rates on to their customers who then pass on the rates to their customers and so on. Audits will eventually pick up on mistakes such as this and combined penalties and other potential financial payouts will prove costly to the company responsible for manually inputting rates; not to mention the damage to their brand but also the possibility of losing the customer all together.
Despite solutions available to the market, many businesses continue to cling to antiquated systems and processes. As a result, industry estimates just locating and refiling a contract alone can run on average $300-$400 per month. Another industry resource, the Journal of Contract Management, found that 71% of companies couldn't find at least 10% of their contracts. These costs can add up quickly and they do not even include rate negotiation and agreements.
Contract negotiations can last several rounds and then once agreed on, knowing what the agreed rate is by carrier and/or forwarder on each particular trade lane can be a hassle particularly if a business is still using spreadsheets to track all of this.
Collaborative Data Exchange (CODE) connects forwarders and carriers by supporting a data exchange benefiting contract management in the form of such data as tariff, surcharge and allocation necessary for the successful implementation of a contract.
The exchange supports a variety of structures and formats including GPM’s Import Wizard while processing data automatically according to rule sets and carrier, forwarder or contract defaults. In addition, CODE provides a graphical user interface via GPM to visualize data to all participating parties.
Benefits of CODE
CODE will help greatly with accuracy and data quality. Overtime, it will also help reduce the amount of invoice disputes businesses tend to have. Additionally, not only will CODE reduce the time from when a rate is available at the forwarders’ or shippers’ side but it will ensure the most up to date pricing is available on online portals.
According to PLS’ CEO, “CODE is a logical addition to our GPM (Global Price Management) offering that manages everything from rate quotes and management to allocation to tenders. By using CODE, our customers benefit by having rates available instantaneously, thereby allowing them to react quickly and effectively to market changes”.
Find out More
Stay in touch to find out more about CODE and other solutions. CODE is currently being piloting with two VOCCs and 2 NVOCCs. Check out our website
to learn more. While you there, be sure to sign up
for a demo.