XPO Logistics reduced idle times of transport and increased the volume of cargo transportation using the system of 1C

On January 16, 2019 the 1C-Rarus company announced implementation in the international logistic company XPO Logistics of the solution "to 1C: Transport logistics, forwarding and control of CORP motor transport".

Till 2015 XPO Logistics specialized in freight transportation according to the FTL scheme assuming lease by the client of the machine with a full load. Since 2015 the company develops transportation of combined loads (LTL transportation). Also the volume of the executed orders increased. For January, 2019 the company receives over 8700 orders and makes more than 3750 runs a month.

The information system which would provide exact cost accounting of transportations at a planning stage, control of a deviation from routes and support of online communication with drivers, consignors and consignees became necessary for the enterprise for more effective work.

As the company is a large international player in the market of transport services with the main location in the USA, it was necessary to organize formation of operational and financial statements according to requirements of SOX (law Sarbanes-Oxley, USA). Besides, a system needed to be integrated with the IT solutions which are already used in XPO Logistics on the 1C Platform: "1C: Payroll and HR Management 8", "1C: Document Flow 8", "1C: Manufacturing Enterprise Management 8".

System "1C: The transport logistics, forwarding and control of CORP motor transport" was unrolled in 370 workplaces in department of transport transactions, department of operation of transport, department of a financial analysis, accounting, department of work with personnel and department of work with claims.

Key results:

• Automation of calculations over 3000 complex rates for a broad spectrum of transport services both for clients, and for contractors. It allowed to exclude completely a human factor when tariffing orders, to reduce quantity of errors. Order processing accelerated. Operating control of the bills which are made out by contractors that reduces risks of unauthorized payments is organized. The total quantity of rates grew by 7%, and revenue increased by 12% that demonstrates effective business development in the new directions of transportations.
• Possibility of carrying out planned cost calculation of transport services at a stage of planning of runs. It allows to optimize distribution of vehicles by orders and promotes increase in profitability of transportations.
• Optimization of work of departments of transport transactions and operation of transport. The staff of department of transport transactions (more than 70 users in regional offices) spends less time for planning of routes, distribution of loading of drivers and vehicles. As a result idle times of transport are reduced by 13%, empty runs - for 8%. At the same time the number of incoming requisitions on transportation grew by 12%, and the number of runs managed to be increased by 27%.
• Setup of online communication of staff of office with drivers. Drivers can transmit tasks through SMS notifications. It helps to control work of drivers on runs and to react timely to all unplanned situations - the road accidents, forced deviations, replacements of the vehicle.
• An opportunity for clients of the company to work in the general information system "with 1C: Transport logistics, forwarding and control of CORP motor transport": the client can directly place the shipping request of a load in a system, check its accomplishment, create the corresponding report.
• Automation of accounting of income and expenses in the directions of transportations, including and by multimodal orders. Data on income are calculated for a complete chain of transportation, without crushing on specific sites, collecting of costs - for each stage of transportation separately. It allows to analyze a financial result of the performed flights with detailing to each stage of run, a route, the car.
• Reduction of business processes of the company in compliance to requirements of the SOX standard regarding differentiation of access rights. The booked audit showed that a system "1C: The transport logistics, forwarding and control of CORP motor transport" completely conform to requirements of SOX: differentiation of access rights at which only to the employees responsible for the specific field of work, the relevant data will be available that allows to exclude unauthorized access to the confidential information or information which is not entering functionality of the employee is configured.
• Integration "1C: The transport logistics, forwarding and control of CORP motor transport" with other information systems of the company helped to optimize work of accounting and finance division. Exact calculation of a financial result is provided, the paper flow of documents is reduced, closing of reporting period accelerated. It became possible also thanks to change of the moment of acceptance of contingent gains and expenses - earlier contingent gains and expenses formed at the time of loading of the car, now - at the time of unloading.

"The created system provided operational receiving management information. Comparing the directions of transportations by profitability and costs for each kilometer, the management makes objective decisions on further development of the company. Taking into account evident and specific data the management can select the most profitable directions, is accurate plan financial profit. We are going to develop "1C: The transport logistics, forwarding and control of motor transport" to equip with new functionality". Marina Bolshakova, director of the transport transactions XPO Logistics Fresh