An error in the carrier’s billing system resulted in a multi-million dollar mistake for this Fortune 500 Company. Green Mountain Technology’s (GMT) best-in-class audit caught the error, which saved more than $11 million and prevented an internal panic.
This company had recently renegotiated their contract with their carrier. The week before their contract changed, all their base discounts were dropped and they were billed at list rates. The issues continued to change week-to-week, making the billing error complex to calculate and significant to the company’s bottom line.
GMT’s granular audit rerates millions of shipments down-to-the-penny, which allows for 100% accuracy so customers can confidently pay a clean bill. As part of the process, GMT allocates the shipping costs based off custom, automated business rules to a specific department/profit center.
GMT’s audit found the mistake and adjusted the billing before it was allocated to individual departments/profit centers, which reduced the number of people impacted and thereby prevented a stressful situation. With GMT’s audit in place, weekly payment processing was not impacted and the company was able to pay a clean bill.
A key component in making this process relatively stress-free is that GMT’s audit was able to handle the complexity of the situation. Billing issues continued to change week-to-week because the company was in the process of implementing a new contract with the carrier. This meant that in the process of trying to correct the billing error, they were also changing over to a new set of rates per the new contract. GMT’s system already had the new contract loaded and was able to seamlessly pin-point the changing billing errors and provide documentation as to what the correct billing amount should have been (See Table 1).
GMT’s audit saved the company more than $11 million. To date, this is the largest single incident audit adjustment that GMT has corrected.