News - 13 June 2008
Cummins Chooses Schneider Logistics Europe for Freight Audit and Payment Role
Cummins, the world’s largest independent diesel engine producer, has chosen Schneider Logistics Europe as the provider of freight audit and payment services for its United Kingdom manufacturing plants at Darlington, Daventry and Ramsgate. Under the contract Schneider will capture data from carrier invoices, conduct rate, duplication and execution audits of all freight invoices, resolve disputes with carriers, interface with Cummins’ accounts payable system and pay Cummins’ carriers.
In selecting a freight audit and payment provider, Cummins used a rigorous and objective scoring system similar to its Six Sigma approach and methodology for eliminating process defaults. Schneider Logistics emerged with the highest ranking, reinforcing the strength and quality of its submission. “Our vendor selection team found Schneider’s approach particularly strong in several key areas such as data capture and reporting, data validity checking, and rate and tariff checking,” said Claire Miller, corporate indirect purchasing manager at Cummins. “Schneider’s experience in freight audit and payment was also evident in its structured and robust implementation plan.” Cummins joins a growing number of blue-chip companies in Europe outsourcing complex freight audit and payment functions to Schneider Logistics. Others include automotive components manufacturer Visteon and the consumer lifestyles division of Philips. A recent report published by the Georgia Institute of Technology, in cooperation with Cap Gemini, DHL and SAP, found that the number of third-party logistics users in Europe outsourcing their freight audit and payment functions had risen to 22 percent from the previous year’s figure of 10 percent.
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