Are your company’s invoicing controls adequate? Do you have metrics to measure the accuracy of your billings? Customers complain when they are overcharged, but do they say anything when they are under-billed? One useful metric for measuring invoice accuracy involves overcharge claims. ARG has identified a direct correlation between under-billings and overcharges. If you are overcharging your customer, then you are likely under-billing them as well.

Industry Problem

It is well known that invoice accuracy has been a major challenge for carriers, including VOCCs, NVOCCs, and…Read More

Inadequate Controls

Most companies have sophisticated auto-rating systems, and often an internal audit team reviewing exceptions…Read More

The Solution

ARG’s Cargo Revenue Protection Service: Experienced analysts utilize ARG’s ATLAS system, which is a robust platform that employs Read More

ARG Easy Reference Comparison Chart

Basic Revenue Protection Advanced Revenue Protection Optimized Protection
Audit Type Under-billing + Overcharge Under-billing only Under-billing + Overcharge
Audit Cycle Live
Pre-audit only
Quarterly
Post-audit only
Live + Quarterly
Pre-audit + Post-audit
High ROI Yes Yes Yes
Strengthens Internal Audit Process Medium High Highest
Empowers Internal Audit Team to Switch from Tactical to Strategic Medium High Highest
Enables Both Top Line Revenue and Bottom Line Profit Growth Medium High Highest
Shrinking of Cash Conversion Cycle / Days Sales Outstanding Yes N/A Yes
IT / Set-Up Investment Needed to Begin 5 hours 5 hours 5 hours

Pre-audit vs Post-audit

This service may be performed as a pre-audit, before invoices are actually sent to the customer and / or as a post-audit. During the pre-audit, ARG monitors and analyzes transactions in real-time, and provides adjustments as needed. For the post-audit, ARG reviews transactions on a monthly or quarterly basis, and will generate and recover supplemental invoices. To achieve transactional assurance, ARG recommends doing both a pre-audit and post audit—both are seamless and easy to setup.

Potentials sources of revenue loss (partial listing)

Surcharges

  • Bunker adjustment factor / fuel surcharges
  • Demurrage / detention
  • Chassis rental
  • Equipment substitutions
  • Hazmat fees
  • Inland fees (rail, motor, barge)
  • Stop in transit
  • Terminal handling fees
  • Weight, Cubic Foot / Measure
  • Wharfage

Ocean/Air base charges

  • Service contract / tariff validation
  • Spot rate validation
  • Container validation
    • Container count
    • Container size (20,40,45, AKE, PMC)
    • Container type (i.e. flat rack, open top, HC, reefer, etc.)
ARG’s Cargo Revenue Protection Service analyzes client invoices with the objective of identifying under-billed revenue, and collecting it on their behalf. Engagements are ongoing, require no staffing resources from the client, and are facilitated at ARG’s corporate office…
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Benefits of ARG's Cargo Revenue Protection Service

Requires few resources to implement & maintain

Improves profitability by recapturing under-billed revenue (greater than $100 million since 2004)

Has benefited every client, from small providers to major Fortune 500 global carriers (references available)

Provides quick, insightful analysis of revenue streams, enabling clients to swiftly implement process improvements and increase downstream profits

Improves Customer Experience by improving invoice accuracy rates

Please Contact us to learn more about this service.

Requirements to setup and maintain ARG’s Cargo Revenue Protection Service

5-15 hours to generate data reports, and setup system access plus 1-2 hours of training on liner management system & pricing guidelines
Ongoing: 5-7 hours a month to review ARG’s findings