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Q. Why should I outsource?
A. Many companies have begun to outsource portions of their internal functions to focus more on their core strengths. Everything from processing payroll to hiring employees have become commonly outsourced. In most cases these companies have found that they can get better services at a lower cost than by keeping these functions in-house. They are able to reduce clerical expense and gain significant expertise in the specific field. However, while shipping can represent as much as 20-30% of the cost of doing business, many companies admit that they spend little or no time internally trying to reduce these expenses.
Q. Can STC really generate another profit center for us?
A. Consider this: If your company has an operating ratio of 95% (5% being profits) and STC saved you $25,000.00 annually (on your direct freight expense), those savings would be equal to $500,000.00 in sales revenue for your company. Just think about how much work and expense it takes to generate $500,000.00 in sales. Your savings are your profits!
Q. How much money will STC save me?
A. The actual savings your company can expect to achieve will be outlined in our final proposal to you. This dollar amount obviously varies with each company but we find that the average savings figures are usually 10-25% under your current rates. We estimate that 90% of the freight analyses we have completed show that those companies are paying higher rates than what is available though the STC program.
Q. Which departments in my company will benefit most from STC’ services?
A. Several. Traffic departments will enjoy reduced dock congestion and easy routing instructions for each shipment. Accounting departments often stagger at how much clerical work is eliminated with our freight bill processing and freight payment system. Both sales and purchasing departments use our instant rate quotes for bidding purposes. Finally, top executives such as CEOs, Presidents, CFOs, VPs, and Controllers enjoy the bottom line savings and management reports which allow them to make more informed decisions.
Q. Are many companies choosing to outsource logistics?
A. Yes. It has been estimated that within the next two years, approximately 60% of all top companies will be outsourcing some portion of their logistics function.
Q. How much does the STC program cost?
A. We are paid a flat pre-proposed monthly service fee from our customers. The fee varies by customer and is based on the number of bills processed per month. This fee is easily justified for three reasons: 1) it will be offset by the direct freight savings we provide 2) it will include all of our additional services including freight payment, preaudit, and reporting, and 3) The fee is kept small because it is offset by a small sales commission paid to us by the carriers (however, the rates and savings figures we project are based on the actual pricing we have negotiated on your company’s behalf. We take no part of the savings projections. The savings remain entirely with you the customer).
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