Most claim management companies only know how to file freight claims.
That’s what claim management is about, isn’t it?
Not if you’re serious about increasing claim revenue.
At CDS, we’ve recovered $15 million in claims in just 3 years.
Our secret? We take a whole company approach to freight claim recovery. We look at the processes across the company that contribute to loss, damage, and claims recovery. Our rich background of logistics experience allows us to see what other claim managers miss.
The reality is, freight claims touch almost every department in the company – shipping and receiving, accounting, accounts payable, and customer service. When frequent damage calls for a change in packaging, even marketing and product development need to get involved.
Being able to deal with the interconnected nature of freight claims is the key to CDS’ success. Freight claim management is the only business we are involved in today. However, prior to specializing in freight claims, we worked in several different roles, including Freight Settlement, LTL Consolidation, Freight Brokerage, Consulting, and Logistics Software Development. What’s more, we’ve worked on both the carrier and the shipper side.
This experience allows us to:
- Create loss-reduction procedures that are practical enough for every day use
- Understand the strategies carriers use to avoid paying claims
- Use legal precedents to convince carriers to pay declined claims
- Find forgotten expenses to claim by reviewing departmental processes
- Analyze claims data to find and correct the root causes of loss and damage
- Facilitate collaboration between departments
These tasks take years of logistics experience – and that’s what CDS has to offer. Our team has over 200 years of combined experience. Here’s the logistics experience that we bring to the table:
Freight Claims Management
Manufacturer of Farm and Construction Equipment
Hired by and reported to the Logistics/Financial Manager. In 2007 CDS reviewed the Freight Claims Processing for a manufacturer of Farm Equipment and Construction Equipment.
The CDS review indicated opportunities to improve processes, increase claims filing and increase recoveries. Recoveries went from $150,000 annually to over $1.2 million dollars in 2012. By 2015, CDS increased recoveries to $2 million annually.
We were on site for 3.5 years and our review of their claim processing was what led us to this business. CDS continues to manage the company’s Freight Claims Management Program.
Leading Provider of Frozen Potatoes and Snacks
Hired by and reported to the Executive Director of Logistics. CDS reviewed their Freight Claims Management Program and discovered claims were not being filed, not being filed correctly, and not being resolved in a timely manner. In addition, the company was not using their claims software effectively. There were over $900,000 in claims at stake.
The previous year this company recovered about $150,000 in claims.
CDS implemented new processes, and as a result, $500,000 was collected within six months.
Construction and Mining Corporation
Hired and reported to the VP of Aftermarkets and Director of Logistics. This case involved a claim that was filed for the wrong amount. We discovered that claims were being filed for the incorrect amount for intercompany moves. One particular example stands out: a claim was filed and paid with a signed release of $100,000. However, the claim should have been filed for over $400,000. Unfortunately, since the company signed the release, CDS could not go back and collect the remaining $300,000. Today, CDS is managing the company’s freight claims.
Persistence with Carriers
A claim for $43,000 was declined by both the insurance company and the carrier. Once we intervened, the insurance company paid the full amount within 3 weeks.
For another client, we found that they had filed a claim for the incorrect amount. Our client had already cashed the payment check, which is considered a release of liability. However, we presented the insurance company with court precedents and persisted over several weeks. In the end, we collected an additional $3,425.
Consulting – Additional Logistics Experience
Farm Equipment and Construction Equipment Manufacturer
For several years this company had outsourced Transportation/Logistics and Supply Chain functions to a third party. A decision was made to bring these functions in-house.
CDS was hired by the Director of Operations and reported to the Logistics Financial Manager. From August 2003 through September 2006, CDS was on-site at the company.
Freight Settlement was a major issue. The Company hired CDS to review their outsourced Freight Settlement Program and to assist in creating a Requirements Document for a TMS program to support an in-house, Transportation/Logistics Department.
Freight Settlement fees were one of the costs that could be eliminated to help fund the TMS.
CDS reviewed current Freight Settlement processes and procedures and implemented necessary changes to stabilize the Program until it could be brought in-house as a part of the new TMS and Logistics Department functions.
CDS was also a part of the TMS Requirements and Selection Committee.
CDS was also a part of the SAP implementation team as it related to Freight Settlement and TMS.
Leading Distributor of Fluid Handling Products
Hired by and reported to the VP of Operations. This company had recently been acquired by an investment firm with the intention of turning the company around as well as reorganizing it.
CDS was engaged to review current processes, train a newly hired Logistics staff, identify opportunities to reduce costs, and implement processes to ensure an ongoing world class Supply Chain/Distribution Program.
The initial review indicated a total lack of formal processes or procedures for any Logistics/Supply Chain function.
CDS took the following actions:
- Reduced company fleet deliveries
- Developed a program to charge freight costs based on order value
- Developed program to become freight neutral
- Improved customer delivery service
- Reduced customer delivery cost
- Changed inbound freight terms from prepaid to collect to control cost
- Revised the current TMS program
- Negotiated new small parcel contracts, increasing discounts
- Negotiated new LTL contracts, increasing discounts
- Implemented a freight bill pre-audit program
- Eliminated carrier rebate programs to improve cash flow
- Created a single corporate wide LTL contract
Logistics/Supply Chain Management
Manufacturer of Farm Equipment and Construction Equipment
CDS managed US to Canada and Canada to US cross-border consolidation and distribution programs, working directly with company fleets to reduce backhaul empty miles and improve load factors to reduce costs per mile.
CDS created, built, implemented and managed a Shippers’ Association made up of manufacturers and distributors, including some of the largest hardware retailers in the US. The Shippers’ Association operated much like a consolidator, co-mingling LTL shipments from many shippers and building straight or stop-off loads to numerous destinations to improve service and lower transportation costs.
Independently Owned Hardware Chain – 4,600 Members:
CDS performed a study for the previously mentioned Shippers’ Association. CDS reviewed data from the chain’s freight payment company, and discovered potential backhaul and consolidation opportunities. CDS also identified methods for the reduction of inbound transportation costs, empty miles for the fleet, and fleet costs. Based on the results from this study, CDS developed, implemented, and managed a Load Control Center. Through this program, CDS managed inbound freight from over 6,000 suppliers to 15 distribution centers. CDS created software to manage the Load Control Center and Central Dispatch Operation.
Through the Central Dispatch Operation and in conjunction with the Hardware Chain Fleet and common carriers, CDS set up six cross dock operations throughout the US. These cross docks accepted LTL shipments from suppliers via common carriers and the Fleet. The LTL loads were consolidated into TL /Inter-Modal or multi-stop loads and were delivered to the 15 distribution centers on a scheduled basis.
As a result, the consolidation program reduced inbound costs by 20% – 25%.
For this program, the fleet operated as a common carrier. As a part of the backhaul program, the fleet picked up freight not only for the distribution center at which they were domiciled, but for all 15 distribution centers. They then delivered it to one of the six cross docks. Since the fleet operated as a common carrier, they were paid by CDS for these services, increasing backhaul revenue by 25% to 30%.
CDS developed software that provided communication between the cross docks, fleets and distribution centers, including information about freight in transit, loads en route, diagrams of what was loaded in the trailer and where, dispatch dates, ETA, carriers handling the move etc.
Eventually, the Chain took over the entire operation including duplication of the software as well as maintenance of the same cross docks, carrier contracts, and carrier base. The program is still in operation today.
A Billion Dollar Hardware Co-op
During this same time CDS created a similar program for another Hardware Chain which handled the distribution of paint from their paint factory to over 5,000 dealers.
A Big Box Hardware Retailer
CDS created, implemented, and managed an Import Container Receiving and Delivery Program. Between 2,500 and 3,000 import containers were unloaded, received, and stored.
In addition to the above, CDS created a pick/pack operation. CDS was also responsible for ensuring on-time, weekly scheduled deliveries to the retail stores. To manage the delivery service, CDS created a Freight Brokerage Operation with scheduled deliveries to over 150 retail stores in a six-state area.
Because of these operations, it became necessary to develop software to help manage the growing business. CDS developed one of the first TMS programs, with funding from a major corporation in Houston Texas.
The TMS software included a BOL Generator, Carrier Routing, Least Cost Carrier Selection, Correct Mode Selection, Identified Consolidation Opportunities, GL Automatic Application, Freight Audit and Settlement, GL Allocation, and Supplier Compliance Modules.
The TMS program was used by:
- Electronics Manufacturer (15 sites)
- Food Products Manufacturer
- Government (1,600 users)
- Diversified Manufacturer (5 sites)
- Multi-national Corporation (Louisville Location)
- Major Canadian Retailer
- Lighting Manufacturer
Our diverse experience is the key to our success. Want to see what CDS can do for you? Contact us here.