Freight Rating KPIs – a Key to Continuous Process Improvement
Freight rating is a key component to the overall freight audit and payment process. Like other business processes, freight audit and payment can be managed to achieve continuous process improvement by applying the traditional steps of define, measure, analyze, improve and control (DMAIC). When professional process management experts are involved in freight payment, they define the business goals of the project; measure process inputs and outputs; analyze the data; improve the process and make sure controls are in place so the improvements “stick.” Then the process managers start the DMAIC steps over, striving for continuous improvement.
Cass clients are often amazed at the improvements they can achieve by focusing on freight rating. The percentage of invoices submitted for payment with missing rates is a key performance indicator (KPI). The use of a freight rating system aids in the reduction of these types of exception invoices to increase process automation.
The Cass account team works with clients to set and achieve goals for rated record improvement. When customers’ invoices cannot be matched to a rate on file, the Cass team diagnoses the issues that cause rate failure. Reports available from CassPort®, the Cass freight business intelligence engine, make it easy for clients to see “how many records rated?” and analyze data to determine root causes of missing rates, which can include the use of non-authorized carriers. The quality of the Cass Ratemaker engine and the efforts of the Cass account team combine to improve each client’s percentage of rated records, which in turn, increases efficiencies. When accurate rates are on file, the automated system is able to audit invoices and accrue with precise accuracy.