Return on Investment Guide
MercuryGate - the TMS solution that finally closes the business equation for the buyer!!!
Can't justify capital expenditure for software? Then expense your MercuryGate solution initially as a subscription fee or by a transaction fee. With limited expense, this approach allows you to prove the ROI with real savings. With demonstrable savings in hand, MercuryGate then allows you to convert to a perpetual license, an easy sell for capital procurement!
MercuryGate provides many different avenues to help you realize significant cost savings and create a strong return on investment for your enterprise. While actual returns may vary due to the unique characteristics of each business, our experience has allowed us to develop some generic ROI guidelines for different aspects of transportation management. These estimates should be helpful in determining how MercuryGate's capabilities may be able to deliver value to your business. To view these estimates, click on an aspect of transportation management listed below.
- Contract Management
- Mode Shift and Aggregation
- Route Optimization
- Multi-Enterprise Optimization
Online support of contracts and rates in a real time shared environment can enhance the communication of vital information across the enterprise. True rate comparisons across all modes, not only enabling correct core carrier selection but optimal use of modes results in freight cost savings. The cost of administering this information is greatly reduced through a web-native process. Client contracts that represent uplifts or unique discounts provide a unique method to share price information in addition to cost. This pricing/costing exercise is normally a time consuming and manual process. Estimated ROI can exceed 25 percent of the current costs of communication and administration of this process.
The capability and support where the correct contracted carrier is consistently selected based on cost and service. Combined with the Contract Management function above, cost-effective negotiated contracts can be leveraged across the entire corporation throughout the world! Conservative ROI is estimated at 3-5 percent of total freight cost.
Mode Shift and Aggregation
Improved operational capability that allow a business to use optimal or efficient or correct modes of transportation. Aggregation allows multiple shipments to be consolidated reducing the possibility of utilizing inefficient or incorrect transportation modes thus greatly reducing the per shipment cost and tonnage rates. Estimated ROI ranges from 2-6 percent of total freight cost.
The ability to consolidate shipments and create multiple stop truckload moves as well as the construction and utilization of pools and mode skipping. Optimization can occur for all locations from a single management point. Shipment consolidation from single origins or to single destinations provides ROI, but combined with the ability to optimize routes will result in substantial ROI. The combined ability to route freight to and from multiple facilities and also incorporate the use of pooling and cross docking results in a truly cost effective supply chain. Estimated ROI at 4-8 percent of total freight cost.
Users across divisions or companies are allowed to combine shipments thereby developing routes that are mutually beneficial. The broader view generally provides more saving opportunities. Estimated ROI at 6-12 percent of total freight costs.
Communications and Integration
EDI and VAN costs are often a very large cost component of gaining visibility and linkage with transportation data such as ASN notification, status updates and tender processes. New methods of direct linkage, transport technologies and mapping capability can greatly reduce the costs typically associated with these activities. Estimated ROI can exceed 80 percent of total communications costs.
A huge advantage is the capacity to integrate information from communications and operations across your enterprise to authorized users. Advanced visibility can provide cost benefit in a number of different ways. In-transit status and the reduction of pipeline inventory can yield significant savings results. Additional value is derived form improved customer satisfaction based on real time availability of data. Visibility ROI goes far beyond simple costs savings however exact estimates vary widely from business to business.
Proof of Delivery
While agreeably hard to demonstrate true dollar value, the visibility of what is delivered when is a valuable aspect of MercuryGate. With the increased scrutiny on company financials, accurate revenue accruals are essential to business operations. MercuryGate will capture and display status messages from any carrier from any mode when goods are actually delivered. These status messages provide the kind of detailed backup required in today's demanding financial scrutiny allowing companies to accrue revenues quicker and with more confidence! POD provides valuable carrier and supplier compliance information but also provides the triggering mechanism to execute the settlement process; improved efficiency of POD helps in speeding up the cash cycle for billing. ROI for this function is priceless!
Settlements and Freight Bill Payment
Automation of Freight Bill Payment activities can have a significant impact on streamlining your business. Cost savings from electronic transmittal of rated payment information, electronic payment and automated match pay in a shared environment can all drive large efficiencies and cost savings. Time and costs associated with allocations, accruals and disputes can be greatly reduced while improving accuracy and information availability. Estimated savings and ROI results can exceed 50 percent of the cost of administering and auditing current freight bill process administration. This does not include the benefit of accurate and timely support of financial processing.
Typical transportation processes are traditionally manual, labor intense and re-active in nature. MercuryGate is designed to support best of breed transportation processes and provide a pro-active, manage-by-exceptions environment. The improvements in operations and administration allow resources to be allocated to productive cost reducing and revenue generating activities.