SDCE Top 100 Supply Chain Projects of 2020

Where the Rubber Meets the Road on Shipping Fee Audit, Recovery and Reduction

Veriship _ SimpleTire Case Study

About SimpleTire

SimpleTire manages millions of shipments each year, connecting customers with thousands of independent tire distributors and installation centers across the country. Sifted audit, insights and payment solutions have already helped SimpleTire recover or avoid more than $1 million in shipping fees through improved visibility and predictive analytics. Sifted’s intuitive dashboards give SimpleTire easy access to surcharge discrepancies, parcel rate data, and freight data that identify opportunities for concrete savings – and better contracting going forward.

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$1,000,000 Savings Delivered During First Year

When you add up all manufacturers, tire brands, treads, sizes, and ratings today, the market complexity can be staggering.

Each year, according to the U.S. Tire Manufacturers Association, U.S. manufacturers produce more than 270 million replacement tires, that are handled by 3,000+ suppliers and distributed to 10,000+ installation centers nationwide. It’s a market ripe for disruption and simplification.

SimpleTire, based in Trevose, Philadelphia, is bringing convenience and simplicity to this fragmented market. Its low-cost, high-volume business model links tire distributors and installation centers across the country into one seamless network, making tire shopping and installation simple and painless. SimpleTire currently processes millions of shipments annually.

Thomas Ganey is senior vice president of operations at SimpleTire and it’s his job to make sure customers get the right tires, at the right place, at the right time. It’s also his job to make sure that shipping expenses are monitored, managed and kept as low as possible.

Ganey said excessive surcharges, late deliveries and the lack of carrier accountability were the driving factors in his decision to implement the Sifted Audit & Insights platform and Parcel Pay solutions.

“As a leadership team, we didn’t have a clear understanding of our shipping expenses and no easy way to tell if we were receiving the right service levels and paying the right amounts,” Ganey said. “Sifted gives us a centralized dashboard with timely access to all our parcel data. It’s our single source of truth and allows us to extract KPIs (Key Performance Indicators) like cost-per-package and rates.”

Sifted really allows us to monitor the health of our spendand relationship with carriers in terms of where we’re spending and what we’re seeing in terms of surcharges. We recently had an issue with inflated weights that were creating spikes of $10,000 or more in a single month. We could see it and fix it right away with Sifted.

Thomas Ganey | Senior Vice President of Operations at SimpleTire

Action: Shipping Data Made Accessible and Understandable

With high growth and little time to investigate mounting surcharges, Ganey needed dashboards and analytics that could be up and running, fast. Sifted imported the SimpleTire carrier data in minutes and started identifying refund opportunities on the same day.

“Once we got everything loaded into Sifted, it was easy to spot irregular surcharges for Delivery Area or Dimensions right away,” Ganey said. “In the past, those extra charges would have just perpetuated until somebody figured it out, but with Sifted, we were able to identify the spikes and take action.”

Clear metrics in Sifted’s Insights dashboard raise red flags that inform process adjustments and provide fair warning for planning and budgeting.

“Our high shipping volumes can easily drive millions of dollars in surcharges,” Ganey said. “And in some cases, the surcharges are warranted but in others they’re simply mistakes. With Sifted, we know the di erence between the two and can do something about them. We’re having smarter conversations about where to prioritize and apply resources.”

Shipping Clarity, Insights and Expense Savings Give SimpleTire A Competitive Edge

SimpleTire also uses the Sifted solution to streamline and automate the carrier bill pay process. All carrier invoices for SimpleTire go directly to Sifted where they are audited, reconciled and paid. Post-audit payments ensure instant credits, and cash flow control is more precise.

Greater automation also eliminates errors and late fees, while providing enhanced views of carrier invoice reconciliation with comprehensive reporting.

Mary Hayat is director of accounting at SimpleTire and said her team can now stay focused on core functions and leave tedious carrier invoice reconciliations to the experts.

"Before, invoices were coming in at different times, from different sources. And now with Sifted Bill Pay they’re coming in at specific times, in a consistent format with consistent data. The reliability of that is fantastic, plus it’s saved us several hours a day which is a six-figure productivity gain for our group."

Outcomes: Instant Payback and Ongoing Savings

Ganey said the Sifted solution has already provided tens of thousands in fee recovery and savings. Shipping rates and surcharges have fewer spikes and variations, and carrier invoice payments are more accurate and cost-effective.

“Sifted really allows us to monitor the health of our spend and relationship with carriers in terms of where we’re spending and what we’re seeing in terms of surcharges,” Ganey said. “We recently had an issue with inflated weights that were creating spikes of $10,000 or more in a single month. We could see it and fix it right away with Sifted.”

Ganey said Sifted also provides intelligent decision support for everyday operations as well as carrier expense optimization. With hundreds of negotiable components in a carrier contract, Sifted analytics and modeling capabilities enable better General Rate Increase simulations.

All of this adds up to making more confident decisions about the entire business.

“Sifted helps us control our shipping and freight expenses and plan better, but it also allows us to free up cash to invest in sales, marketing and people to help us grow faster,” Ganey said. “Sifted is one of our most valuable tools and bridges the gap between what you think you know about parcel, and what’s actually happening.”

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