Revenue Leakage

Post 3/3: ✅ A Smart Way to Stop Revenue Leakage

The solution is to check every single job? Or automate the checking processes? FALSE. This is likely to flag too many jobs creating a very long list of false positives, overload the system, the user, and alert fatigue would set in.

Forget rule-based automation that fails due to inconsistent charge codes. We took a different route: filter by gross margin outliers.

📊 Step-by-step:

1. Track job-level revenue, cost, and gross margin %. Create a list of averages by service and tradelane.
2. Flag jobs with margins far below (or above) average (outliers)
3. Deep-dive review only for flagged jobs
4. Investigate unbilled services like customs inspection, port storage, etc.
5. Tag root causes for recurring process gaps
6. Perform period spot checks, especially for vendor rebates and recent cost renegotiations.

This approach works – it’s scalable, data-driven, and minimizes false positives.

Want to tighten your billing accuracy? Start with your margin outliers.

And BTW, a list of averages will help operations with monthly forecasting.

#RevenueLeakage #FreightERP #OperationalExcellence #BillingControl #MarginManagement #WorkingCapital #LogisticsFinance #FreightForwarding #Profitability #BillingErrors #SupplyChain #ProcessImprovement #mmlogistix