Transportation Cost Management

Transportation Cost Management — a module of EPS’ comprehensive, turn-key Cost Management Suite - empowers supply chain managers to reduce transportation costs.

The solution makes it possible to budget freight costs, monitor the effects of transportation decisions, and track cost variances.

EPS Transportation Cost Management works in conjunction with sales order processing systems to analyze transportation costs.

EPS Transportation Cost Management is based on an innovative accounting concept developed specifically for distribution and manufacturing companies. The solution is a cost planning and control tool to combat escalating transportation costs.

EPS Transportation Cost Management administers the mix of factors that drive planning and control decisions, and it provides precise measurements of how specific components of the transportation cost mix affect the overall budget and forecast.

EPS Transportation Cost Management

To effectively control transportation costs, EPS Transportation Cost Management examines key cost drivers including: destination mix, source plants and warehouses, transportation routes, modes of transport, carriers, freight rate, fuel surcharges, and exchange rates, among others.

With transportation budget analysis, users can see factors that contributed to cost overruns verses budget, or historical costs.

EPS Transportation Cost Management helps users identify and explain factors that are at variance with expected levels as a first step to reduce transportation spending and increase effectiveness.

EPS Transportation Cost Management significantly improves the accuracy of budgets and forecasts for distribution costs. The interactive budgeting tool automatically generates initial budgets and forecasts by using past shipping patterns. It also facilitates multiple revisions to reflect corporate shipping preferences.

EPS Transportation Cost Management has reporting capabilities that gives users flexible means of optimizing the transportation mix.

Users can balance the factors that determine warehouse, mode and carrier management. These factors can be managed to improve yields and freight rates, find more effective modes, and manage customer expectations.

  • Features and benefits:
  • Easy-to-navigate user interface
  • Supports multiple currencies and languages
  • Generates annual distribution plans
  • Calculates variances for operating results
  • Identifies unplanned or omitted activities
  • Measures the effects of management decisions about the choice of plants, modes, carriers, and warehouses
  • Creates “red-flag” cost reporting of customers, modes, and carriers
  • Identifies business process and logistical issues that result in increased costs

For more information on EPS Transportation Cost Management, please contact us today!