Outbound logistics is a major expense to many companies. Although competing with products and services is often seen as primary source of competitive edge, freight expenses always add to the total price. This in turn affects the attractiveness of company’s products. Adding a profit margin to customer freight price is often implemented, since arranging freight service adds to costs.
A common problem is inconsistent customer freight pricing by sales personnel. Deliveries are promised free of charge to close the sales or freight price that does not reflect the actual expense is given. Subsidizing customer freight is a slippery slope which diminishes overall profitability. Inconsistent pricing means that company treats its customers unequally.
Logentia provides an easy-to-use customer freight pricing tool which can be implemented from zero to throughout the organization in a matter of weeks. Company’s freight contracts are digitalized in Logentia’s system which enables optimal carrier to be selected every time in terms of cost, delivery time or other parameters. Profit margin can then be added to the price corresponding with optimal carrier. The tool interface can be anything from a mobile phone app to full ERP-integration.
Here’s how Logentia’s customer freight pricing tool improves your EBIT: Freight is bought economically to customer’s benefit and controlled profit margin is implemented to your company’s benefit.
Sign up for a free demo in order to understand how Logentia’s customer freight pricing tool can help you improve your EBIT.