How Automakers Benefit from Global Freight Audit and Payment
The global automotive supply chain is complex and has experienced unprecedented challenges since 2020. Three years later, leading automakers continue to face delays, shortages, and increased costs. From the global semiconductor shortage to fluctuating fuel prices and rising consumer demands, automotive makers are under immense pressure to optimize their operations, move products, and maintain profitability.
Let’s explore the state of the automotive supply chain in 2023 and discuss how freight audit and payment solutions can play a crucial role in controlling costs.
The Evolving Landscape of the Automotive Supply Chain
The supply chain landscape for automotive makers has undergone significant changes in recent years. Several key factors are influencing the industry:
Globalization and Market Expansion: Automotive manufacturers are increasingly expanding their operations to emerging markets, leading to longer and more complex supply chains. This expansion brings logistical challenges, including increased transportation costs and regulatory compliance requirements.
If your freight audit and payment partner is unable to handle the complexity of global supply chain operations, you are missing out on crucial insights, valuable business intelligence, and opportunities for reducing cost-to-serve.
Technological Advancements: The automotive industry is embracing innovations such as electric vehicles and autonomous driving. While these innovations offer immense opportunities for growth, they also introduce new complexities and require streamlined supply chain processes.
As the transportation operation of a global enterprise becomes more complex, a supply chain tech stack transforms from ‘nice-to-have’ to ‘business critical’. Track and trace, end-to-end visibility, and standardized, actionable data are vital in empowering leaders to make well-informed business decisions.
Sustainability and Environmental Concerns: As the emphasis on sustainability grows, automotive manufacturers are under pressure to reduce their carbon footprint. This includes optimizing transportation routes, minimizing empty miles, and improving fuel efficiency, impacting the supply chain.
To fully optimize your end-to-end supply chain, you need end-to-end data visibility. Trax introduced a first-of-its-kind carbon emissions tracker, Carbon Emissions Manager, that uses your existing transportation data within the Trax system to paint a complete emissions picture.
Volatility and Disruption: The automotive industry is particularly vulnerable to supply chain disruptions. Natural disasters, geopolitical tensions, and unforeseen events, such as the COVID-19 pandemic and the global semiconductor shortage, have severely impacted production schedules and caused significant financial losses.
When you have full visibility into your transportation operations and spend, it is easier to overcome these disruptions—transportation leaders can more easily adapt to hiccups with the correct supply chain tech stack. As part of that tech stack, an effective global freight audit and payment solution leverages supply chain technology adoption and end-to-end data integration to provide real-time visibility into shipments. By tracking shipments throughout various stages of transport, supply chain leaders can proactively identify where delays or bottlenecks are occurring, which carriers are most reliable at adhering to contracted rates and terms, and other business critical KPIs.
Global FAP = End-to-End Benefits for Automakers
Global freight audit provides leading automotive enterprises with complete, end-to-end invoice validation. Auditing carrier invoices across all regions and all modes of your global supply chain ensures accuracy and compliance with agreed-upon rates, contracts, and terms. By identifying and rectifying billing errors before payment, the freight audit process prevents overpayment, increasing cost savings and contributing to positive cash flow across the business.
Want to discuss how this can work for you? Reach out to Trax’s FAP experts today.
Trax is the global leader in Transportation Spend Management solutions. We partner with the most global and complex brands to drive meaningful optimizations and savings through industry-leading technology solutions and world-class advisory services. With the largest global footprint spanning North America, Latin America, Asia, and Europe, we enable our clients to have greater control over their transportation performance and spend. Our focus is on your success.