Streamlining Freight Charge Calculation for a Leading Automotive Tool Distributor through Korber

korber case study

Client Overview

Our client is one of America’s premier wholesale distributors of professional automotive tools. With a robust network of 38 distribution centres across the USA and Canada, they cater to over 5000 resellers across North America and Europe. The company boasts a diverse inventory, distributing more than 300,000 Stock Keeping Units (SKUs).

Problem Statement

They faced significant challenges in calculating freight charges for dynamic rates, which are inherently variable. The existing process of updating invoices manually after real-time rate calculations was time-consuming and prone to errors. Given the nature of Less-Than-Truckload (LTL) carriers, where a single truck can accommodate multiple products destined for different locations, the complexity further increased. Efficiently determining the freight charges for such dynamic scenarios required a more streamlined approach.

Challenges:

Manifesting and Freight Charge Calculation: The client’s process involves:

Staging and Manifesting: Before loading, similar packages are grouped together, and appropriate documentation is prepared. During manifesting, the dimensions and weight of pallets are crucial for determining the correct class ID and selecting an appropriate carrier.

HighJump Customization: The HighJump system, used for warehouse management, required customization to handle LTL carriers. When users scanned the necessary identifiers during manifesting before Packing, the system needed to prompt for dimensions such as length, width, height, and weight. This data was essential for calculating the volume and class of each segment.

Pro-Ship Integration: The class and volume data from HighJump needed to be integrated with the Pro-Ship application, which calculated the actual freight charges based on the dynamic charges.ss

Solution Implementation

To address these challenges, a comprehensive solution was implemented, focusing on enhancing the HighJump system’s capabilities and streamlining the integration with the Pro-Ship application.

1. Highjump System Customization:

  • Dimension Input Prompt: When the user scanned the necessary identifiers during the manifesting process, the system was customized to prompt for the input of pallet dimensions (length, width, height, and weight).
  • Automated Volume and Class Calculation: HighJump was enhanced to automatically calculate the volume and determine the class of each pallet based on the input dimensions and weight.

2. Pro-Ship Integration:

  • Seamless Data Transfer: The calculated dimensions, volume, and class data from HighJump were automatically transferred to the Pro-Ship application.
  • Dynamic Freight Charge Calculation: Pro-Ship used this data to calculate real-time freight charges dynamically, ensuring accuracy and reducing the need for manual intervention.

3. Invoice Automation:

  • Real-time Updates: The system was configured to update invoices in real-time based on the freight charges calculated by Pro-Ship, significantly reducing the time and effort required for manual updates.

Results

The implementation of the customized HighJump system and its integration with Pro-Ship yielded substantial benefits for the client:

  • Efficiency Gains: The automation of dimension input and volume calculation reduced the time spent on manual data entry and minimized errors.
  • Accurate Freight Charges: Real-time calculation of freight charges ensured that invoices reflected the true costs, enhancing financial accuracy.
  • Streamlined Operations: The seamless integration between Highjump and Pro-Ship created a more streamlined workflow, reducing bottlenecks during the manifesting process.
  • Improved Customer Satisfaction: Faster and more accurate invoicing improved overall customer satisfaction by providing transparency and reliability in freight charge calculations.

Conclusion

By customizing the Highjump system to handle LTL carriers more effectively and integrating it with the Pro-Ship application, the client successfully optimized their freight charge calculation process. This solution not only enhanced operational efficiency but also ensured greater accuracy and reliability in invoicing, ultimately supporting the client’s commitment to excellence in service delivery.

Written by thebspace

June 25, 2024