Uncovering hidden costs with change order management

A global chemical distribution leader transformed their change order management and uncovered 7% in hidden costs by capturing and measuring change orders in a single system.

Outdated and disconnected change order management processes obscured added costs

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 upon, but these often went unnoticed.

Requiring logistics service providers (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

Within weeks, the team was now able to:

• Cost visibility: See the nature of every change order and understand what types of changes were costing them additional money.
• Reduction in change orders: Reduce unnecessary change order submissions by catching them in real-time and rejecting change orders that didn’t match their needs.
• Simplified invoice reconciliation: 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.

Learn How You Can Uncover Hidden Change Order Costs Today

With the ability to centralize change order management to gain the insight you need, plus our team of experts ready to help you, reducing change order costs has never been easier.