Multi-National Forwarder
An extensive network of partners and high performing technology companies delivering customised supply chain and logistics solutions using CargoWise.
Accelerating the implementation of a seamless revenue share commercial model
Project Background
A complex revenue sharing commercial model was impacting the implementation of optimal operational accounting processes.
The inter/intra company structure of this network included 8 revenue share models, 10 companies, 58 profit centres and 192 billing use cases.
For operational success, the team needed to control all the commercially sensitive components of the gateway business.
Measuring the cost of the gateway cargo handling services and commercial relationships within a global supply chain network when providing efficiencies within a cost centre, instead of a standalone profit centre, was important.
Managing the financial and revenue control risks with associated external networks while driving internal key performance indicators, presented challenges we needed to overcome.
Project Goals
Producing financial statements where revenue and costs are reported as operating income and expenses within the respective multinational firms controlling companies, branches and departments.
Ensuring that internal revenue and costs affect operational profit and loss in the branches / departments, and don’t affect sub-ledgers or balance sheet.
Achieving dynamic financial results without employing manual accounting practices to reconcile inter & intra company accounts.
How we helped their team
Step 1
We gathered the network of partners and subject matter experts to run a dedicated workshop. We helped them clarify the why, what and how. This process enabled us to ideate the perfect revenue share commercial model and uncover the full potential of the future.
Step 2
We documented all user, process and system trials and errors in CargoWise. We designed a proof of concept with a billing use case process map that eliminated system setup conflicts and used CargoWise as a shared database.
Step 3
We configured Global Rates and Accounting setups in CargoWise to achieve optimal automation through data defaulting and workflows.
Step 4
We educated the team on how CargoWise can be used optimally to streamline change management, billing, invoicing and rate management.
Step 5
We increased the business’ capability to better identify opportunities for improvement in commercial frameworks with customers, carriers and other supply chain service providers.
Step 6
We created alignment between teams and leaders within 4 months, helping them overcome a 10 month research journey that had not created positive outcomes.
Project Outcomes
System Alignment
CargoWise roadmap developed and delivered within 3 months of proof of concept
100% Autorated billing
Multi-modal and mixed cargo, all payment/incoterm combinations, & all profit centres involved in the route planning.
Invoicing
90% success rate of defaulted invoicing behaviours