Steve Ferreira, Founder of Ocean Freight Refunds speaks on 'Economic Stimulus & Cost Avoidance for 3PLs & Shippers' at the 7th European 3PL Summit in Brussels, November 25th 2009.
To download all of the slides from the conference for free visit www.3PLsummit.com/eu_2009ppts
Steve Ferreira, Ocean Freight Refunds on 'Economic Stimulus & Cost Avoidance for 3PLs & Shippers'
1. Integrating ocean freight auditing into the supply
chain for Shippers and 3PL’s
Steve Ferreira, CEO
Ocean Freight Refunds & Container
Shipping Technologies
2. Ocean Freight Audit Integration
• Historic ocean freight credit note generation
with a three year scope
• Carrier subsidized audits – why you should not
use your own money to integrate ocean freight
audit
• Real time cost avoidance (funded with vendor
money, but optional step)
• Real time revenue generation (Optional)
Container Shipping Technologies Ocean Freight Refunds
3. What you need to know now
• Any ocean freight audit or audit tool needs to make a
commitment to the client that the initial focus is on
generating large cash refunds from historic invoices
• Should be pay for performance only, but more importantly
any funds utilized should not be from clients budget
• Solution for pre audit should be funded by post audit credits
• Any ocean audit system must not constrain clients resources
Container Shipping Technologies Ocean Freight Refunds
4. Fortune 500 Conference
Attendee
• OFR identified € 500,000 which was paid to client
via a credit note from carriers
• Agreed to post audit 3 years of invoice history
• 50% contingency fee established, No Refund, No
Fee
• Invoices and Ocean Rates sent to OFR via CD
• Client informed OFR of the credit notes and OFR
invoiced client 50% of the credit notes
• Audit took one week and was done offsite
Container Shipping Technologies Ocean Freight Refunds
5. Ocean Freight Audit Settlement
• Costs
– Post audit is 100% free if no credit note is
received by the client. No set up, travel or other
fees should be incurred.
– Contingency fee structure 50/50 based on credit
note confirmation by client
– Pre audit is on a per container basis at
approximately € 2, subject to TEU volume review
Container Shipping Technologies Ocean Freight Refunds
6. Pier 1 Case Study
• 43,000 TEU Year
• Phase 1 - Historic post audit: $250,000 recovered – lump sum
check from ocean vendors to Pier 1
• In case of Pier 1, historic audit was substantial enough to
fund year 1 pre audit.
• Phase 2 – Real time cost avoidance pre audit: $20,000 in mis-
rated invoices corrected weekly
• Phase 3 – Carrier revenue generation: $5,000 in under billed
revenue corrected weekly
• We will view the application in Phase 2 and Phase 3
Container Shipping Technologies Ocean Freight Refunds