How a Tier 1 Automotive Supplier Achieved 99.7% Freight Accrual Accuracy in 60 Days
99.7%
This Tier 1 automotive braking systems supplier was spending over $50M annually in freight across US and Mexico divisions. Most of it was invisible. Despite a prior 4PL engagement and significant investment in attempting an SAP integration, the effort had failed. Inbound international shipments were invisible. Production planning was running blind. Premium freight costs were accumulating with no approval structure in place to challenge them.
The financial impact was compounding. Budget forecasting accuracy had dropped below 90%, meaning every quarterly close carried meaningful variance that nobody could explain or defend. CO2 emissions were unmeasured despite growing environmental compliance pressure from OEM customers. The logistics function had become reactive: managing crises rather than preventing them.
When Argus was engaged, the brief was clear: do what the prior provider couldn’t. Build real visibility, achieve the SAP integration, and get the supply chain under control without disrupting the production lines that couldn’t afford to wait.
Argus delivered full SAP integration and operational visibility within 60 days of engagement, where the prior provider had failed after years of effort.
Six compounding failures
Failed SAP integration
The prior 4PL provider had attempted, and failed, to integrate SAP with their TMS despite significant time and investment from the client's internal team.
Zero international visibility
Inbound international shipments were completely untracked, causing production delays, excess safety stock, and supplier scorecard gaps with no data to act on.
Inaccurate freight accruals
Budget forecasting accuracy had fallen below 90%, creating unresolvable quarterly variance and eroding finance team confidence in logistics cost data.
No CO2 emission tracking
With no emissions measurement capability, the company could not respond to OEM environmental compliance requirements or implement any reduction strategy.
Uncontrolled premium freight
No centralized approval process for premium freight meant above-industry expedite costs were being absorbed with no root-cause analysis or challenge mechanism.
No data-driven decision-making
Limited KPI reporting and no system controls meant leadership was making logistics decisions without reliable data. A structural gap that touched every other problem on this list.
Deployed within 60 days of engagement
Rapid SAP + TMS integration
Argus successfully integrated the Argus TMS with the client's global SAP ERP within 60 days of project initiation, with minimal disruption and no significant internal resource drain. This was the integration the prior provider had been unable to deliver after years of effort.
SAP integration
International shipment tracking
Argus integrated all international freight providers into the TMS, enabling real-time tracking of inbound shipments from origin through delivery. This transformed material planning and production scheduling and enabled supplier scorecards to address root-cause performance issues proactively.
visibility achieved
Freight accrual accuracy
Through full carrier and SAP integration into the Argus TMS, the client gained real-time freight cost visibility at part level. Accrual accuracy improved from below 90% to 99.7%, transforming quarterly close reliability and finance team confidence in cost data.
(up from below 90%)
Premium freight control program
Argus implemented a premium freight management process (PTA) with automated cost approval algorithms, required root-cause coding at shipment initiation, real-time cost visibility, and spot market rate analysis. Premium freight spend dropped 42% and stays accountable.
cost reduction
Logistics Control Tower: 24/7 dedicated team
A dedicated control tower powered by Argus TMS, staffed by a strategic account director, senior logistics engineers, an experienced account manager, on-site personnel, and dedicated BI resources, delivers custom KPI reporting and continuous strategic improvement. GLEC-compliant CO2 emission monitoring was also delivered as part of the program, enabling measurable reduction strategies: FTL capacity maximization, round-trip ratio optimization, and mode shifting.
The numbers
42%
Premium freight cost reduction
99.7%
Freight accrual accuracy
60
Days to full SAP integration
100%
International shipment visibility
GLEC-compliant CO2 emission monitoring delivered. Supplier scorecards implemented. A dedicated 24/7 Control Tower team providing monthly business reviews and continuous improvement year over year. All of it built within the first year of engagement.
30 years of freight expertise. One accountable partner.
30+
Years of freight expertise
2.7×
Savings vs. fees paid
4PL
Logistics Control Tower model
See where your freight spend is
actually going
You’ll walk away with a documented view of what’s working, what isn’t, and what it’s costing you — regardless of what you decide next.
More proof, different industries
Health & Beauty
$5.25M
Construction Equipment
$2M+
Energy / Oil & Gas
$2M+