Maximising revenues in transportation & logistics companies

Transportation and logistics companies face significant challenges in recording and collecting all of the revenue to which they are entitled. This is especially true because of the high volume of transactions and the decentralised nature of service delivery.

Revenue leakage can occur in the following situations:

  • Billing and shipping terms are commonly tailored to fit customer needs. However, tiered pricing, incentives and discounts are not always communicated accurately between sales, operations and finance, resulting in errors and customer disputes.
  • Complex billing and shipping terms may not be accepted by downstream systems. Errors related to work-arounds or manual adjustments result in lost revenue or additional costs.
  • Failure to reconcile order-specific quantities, size and weight with actual picked-up or delivered items results in unbilled revenue or costly loss-related claims.
  • Incomplete or inaccurate shipping information often result in items not progressing to the next stage of delivery. Unresolved errors or omissions result in billing or collection difficulties.
  • Incomplete or inaccurate manifests result in delay-related costs.
  • Unclear or inaccurate terms result in disputes between parties; third-party carriers often have no incentive to work with originating shippers to clear disputes over volume discounts and surcharges.

How PwC can help you

PwC can work with transportation and logistics companies to address these challenges. We help clients implement new sales management processes that eliminate service delivery at below-margin price points and metrics that prevent sales teams from receiving commissions for unprofitable sales.

Have you done everything you can to ensure that you know what your company’s losses are? Have you done everything (or anything) you can to minimise them? Stopping revenue leakage may not sound exciting, but keep in mind that all found or recovered revenue goes straight to your bottom line. And that is exciting.