Accounts Deceivable: Inaccurate billing is costing carriers millions

A major global airline was moving large volumes of high-value, pharmaceutical freight for several customers. Due to the sensitivity of the cargo, the carrier had made significant investments in special temperature-controlled facilities that could accommodate expensive Envirotainers to keep the cold chain intact.

After some time, however, the carrier noticed that revenues from the service were underperforming, despite a good track record of shipments with few temperature incursions. The carrier turned to a consulting firm to figure out what went wrong. U.S.-based consulting firm ARG LLC, which specializes in revenue protection services. discovered that a data error had been made with the pharma shipments, most likely at the local terminal. These shipments were being mistakenly entered into the booking system as “general cargo,” rather than specialty pharma cargo. Because the booking data interfaced directly with the carrier’s billing system, more than 100 of the pharma shipments had been invoiced at the general cargo rate, instead of the high-value pharma rate.

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Article posted by Air Cargo World

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