See how CMA CGM, one of the world’s largest shipping and logistics companies, partners with OpenEnvoy on AI Freight Audit.
Summary
OpenEnvoy's innovative application of AI in freight auditing solves existing challenges and sets a new standard for efficiency and accuracy in supply chain financial operations.
With OpenEnvoy, companies are transforming their freight audit processes, enjoying streamlined operations, significant cost savings, and enhanced compliance.
Problems with Freight Audit
In freight operations, companies face an overwhelming number of transactions daily. This high volume includes numerous invoices and associated documents that need meticulous auditing. Traditional manual audit processes, which were once the standard, now struggle to keep pace with this demand, often leading to inefficiencies and errors.
Check out our preceding post exploring the challenges logistics companies face with their freight audits.
Clearly a more modern approach is required to handle the scale and complexity of modern freight operations. Meet OpenEnvoy.
OpenEnvoy’s Applied AI-driven Solution
OpenEnvoy's platform uses AI to speed up freight auditing. It completes thorough audits in hours, not months.
This innovation stops overpayments by checking all invoices against agreed rates and actual services. It also builds better relationships with carriers by handling finances fairly and promptly.
OpenEnvoy's AI-powered technology offers a proactive, real-time solution to freight auditing, revolutionizing traditional financial operations in the supply chain industry.
By using advanced AI and machine learning, OpenEnvoy's platform conducts thorough audits within hours of receiving invoices, far exceeding the capabilities of traditional methods.
The 4 Key Features of OpenEnvoy’s Solution:
- Automation and real-time processing: OpenEnvoy makes auditing easy by automating everything from capturing data to making decisions. This removes delays that come with manual processing and ensures any mistakes are caught and fixed before payments go out.
- Comprehensive data integration: The platform smoothly works with Transportation Management Systems (TMS), the enterprise resource planning (ERP) system, and 3rd party sources. This means data flows continuously, letting AI do audits in real-time using the latest info, such as contracts, bills of lading, and detailed carrier tariffs.
- Preventative auditing approach: OpenEnvoy's system checks every invoice against agreed rates and actual services, stopping overpayments before they happen. This saves money by avoiding expensive recovery processes. It also keeps relationships with carriers strong by handling finances accurately and quickly.
- Enhanced financial visibility and control: OpenEnvoy gives a clear view of freight costs, offering detailed breakdowns and analytics. This helps companies manage spending better by spotting trends, improving budget accuracy, and refining overall financial plans.
Scoular’s Controller explains the massive impact of OpenEnvoy’s Solution on Scoular’s payment process.
"If we fall behind with ocean carriers, we could be faced with credit holds. This means we essentially pay up front and go to the vendor after to clawback any overpayment or duplicate payment, which is time-consuming and takes employee resources. It was a two-fold problem. OpenEnvoy’s real-time auditing capabilities have fundamentally changed how we handle these transactions, keeping us ahead and preventing such costly scenarios."
The Three Benefits Derived from using OpenEnvoy:
OpenEnvoy’s advanced AI-driven solutions deliver transformative benefits across cost savings and operational efficiency in supply chain management.
- Identifies overbillings. By effectively identifying overbillings, OpenEnvoy has saved its clients more than $400 million in overbillings in just a few years. This boosts finances by making sure they stick to agreed prices for all spending, from direct to indirect costs, even when dealing with tricky things like commodity prices.
- Automates everything. OpenEnvoy automates the whole freight audit process, lightening the load for finance and logistics teams. This means teams can focus on strategic tasks instead of tedious manual checks and recovery processes. It also makes processing invoices smoother and keeps an eye on compliance in real-time.
- Complete visibility. OpenEnvoy gives unmatched visibility into spending, supplier performance, and price adherence. With OpenEnvoy, there's no need for separate platforms or services for different audits. It does real-time audits on freight invoices, stopping overpayments before they happen and cutting the hassle of clawing back funds from carriers.
By combining all these features into one efficient platform, OpenEnvoy not only saves costs but also streamlines supply chain operations. It's a complete solution for modernizing and improving financial processes in supply chain management.
Case Study
The implementation of OpenEnvoy brought transformative changes to a global shipping leader, resolving critical challenges in finance automation across both Accounts Payable and Accounts Receivable. With over 50,000 employees and a revenue exceeding $50 billion, the company sought to streamline its invoicing processes in the shipping and logistics industry, where accuracy and speed are critical.
By leveraging OpenEnvoy's Applied AI capabilities, the company achieved remarkable results.
They achieved an impressive 99% accuracy rate and slashed freight audit time from days to just 3 hours. This real-time audit capability was crucial in examining complex freight charges like cleaning fees and fuel charges, ensuring accuracy and efficiency in financial transactions.
OpenEnvoy's implementation automated core processes of invoice gathering and reconciliation using AI, cutting manual work significantly. With invoices and charges accurately recorded in real-time, the finance team could focus on exception handling and optimizing cash flow, rather than tedious clerical tasks.
Furthermore, OpenEnvoy's enhanced accuracy and control improved cash flow optimization. By avoiding underbilling errors and spotting overbilling and duplications before payment, the company eliminated the need for traditional freight audits and claw-backs, optimizing cash flow for both parties involved.
Impressed by the success of the project, the company plans to deploy OpenEnvoy more broadly across its operations, further leveraging its capabilities to drive efficiency and accuracy in finance automation.
Take control of your supply chain expenses with OpenEnvoy. Visit our logistics page to learn more about our AI-driven solutions for logistics and schedule a demo to see the difference real-time auditing can make in your freight auditing.
