Managing change orders
A global chemical distribution leader uncovered 7% in hidden costs by capturing and measuring change orders in a single system.
Customer Case Study
Outdated and disconnected processes obscured added costs
The challenge
Our customer, a global chemical distributor, was moving large numbers of shipments without a clear understanding of what their end costs would be during the invoice process.
Many invoices included change orders that represented significant costs over and above what had been previously agreed, but these often went unnoticed.
Requiring LSPs to enter change orders in e2log allowed the logistics team to see, understand, and measure incremental costs for the first time
All LSPs were required to enter change orders in e2log as their shipments were moving.
Review and approval of all new costs being added to shipment invoices now occurred in a single place.
Incoming change orders, now managed, measured, and contextualized by e2log, could more easily be understood and acted upon by the logistics team.
The discovery of previously hidden costs led to an immediate reduction in unnecessary expenses
The result
Within weeks, the team was now able to:
- See the nature of every change order and understand what types of changes were costing them additional money.
- Reduce unnecessary change order submissions by catching them in real time and rejecting change orders that didn’t match their needs.
- Vastly simplify invoice reconciliation, as costs were now visible from beginning to end.
Using e2log as a single source of truth for change order management revealed that while the organization believed change orders were rare, they actually had ~7% additional costs being incurred on average, costs that could now be eliminated while driving increased accountability among LSPs.
More real-world results
Outcomes
Outcomes: Electrical Equipment
46%
improvement in LSP service levels
By capturing and visualizing all LSP activity, we helped realize a 46% improvement in logistics service provider performance for a leading electrical equipment manufacturer.
Outcomes: Heavy Engineering
70%
increase in process efficiency
Through rapid deployment of logistics request automation and a flexible shipment builder, we helped a heavy engineering company operating on six continents improve dramatically the efficiency of their logistics operations.
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