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Cargo Terminals
The
field's primary objective is to move freight and generate revenue for the
organization. While most cargo operations have auto-rating systems, the
applications are limited to the quality of the data input. Often times the
quick, intense pace of moving freight takes precedence over pricing it
correctly. Common station oversights include:
- Fuel & security charges incorrectly calculated
- Commodities mis-classified / mis-rated
- Invoiced weight based on actual instead
of dimensional weight
- Dangerous goods, perishables, or other handling fees
not properly assessed on the airway bill
- Spot / Ad-hoc rates incorrectly applied
Freight Accounting
Freight accounting is responsible for invoicing customers
properly based on services provided by the stations. Because of
limited resources, freight accounting typically invoices customers for the
amount priced by the stations, and individual shipments aren't heavily
scrutinized. Common freight accounting mistakes include:
- Manually rated shipments not invoiced
- Shipments inappropriately adjusted during audits
- Customer short pays not re-billed for the
difference
- Incorrect data feeds to CNS / CASS
Cargo Pricing
Pricing's main function is to maintain the database of
customer contract rates, fees, and other surcharges in an accurate and
timely manner. If this database is not updated immediately, shipments
may be auto-rated at the incorrect rate. A price increase in a specific
market that goes unaccounted for one day can cost thousands of dollars.
THE SOLUTION
ARG's revenue
optimization and recovery audit analyzes the aforementioned areas of your cargo operation with the objective of identifying under-billed
revenue, and collecting it on your behalf. Audit engagements are
ongoing, require no staffing resources from the client, and are facilitated
at ARG's corporate office.
Compensation is based on a percentage of
revenue actually identified and recovered by our analysts. Since the
scope of ARG's audit is limited to closed receivables, any revenue collected
by ARG would otherwise be unaccounted.
To accomplish our goal, ARG assigns
a staff of skilled analysts to the engagement. The audit team follows a
methodology
that is tried and proven and makes use of ARG's proprietary ATLAS auditing
system. The team is responsible for identifying under billing
situations, generating receivables & corresponding invoices, and collecting revenue from the customer. On a
periodic basis, management reports are provided to our clients detailing the
revenue leakages identified and recovered during the previous period.
Real time results can be obtained from ARG's client web portal. |
