EXL Service, a business processs solutions company, has released Rev-Lift, a solution that identifies weaknesses and errors in backoffice processes that lose carriers money.
Though only introduced recently, the program has been in place with a North American less-than-truckload carrier for the past few years, and EXL has saved the firm $80 million in revenue by improving its data capture processes.
Pradeep Vachani, EXL's vice president, said even though the service is new, a lot of demand has already been generated. No additional carriers have signed on to the program, but Vachani said it is gaining a lot of traction in the industry. Data outsourcing in general, carriers are finding, is a way to get an upper hand in the current soft economy.
“When they think about, 'How do I improve margins? How do I increase profit?’ they are increasingly looking at companies like EXL from a cost-reduction point of view as well as a business transformation point of view, particularly in the area of analytics and big data,” he told American Shipper
Data outsourcing, Vachani said, takes a fixed cost and brings it down to a variable cost on a transaction level, saving the client money. Even though the practice hasn’t penetrated the industry, Vachani said carriers are starting to realize the benefits.
“We’re finding a lot more interest in the last 18 months,” he said.
The outsourcing of data capture and other backoffice processes is nothing new in the trucking industry. Vachani said the bigger companies like Penske have already engaged an outsourcing provider or are in active talks to move IT and other business processes offshore.
Vachani said smaller LTL carriers — EXL focuses on LTL providers, but also counts some TL companies, and even a few shippers, among its clients — have some exposure to data outsourcing, but simply need to know more before they sign up for an outsourced solution. When EXL started offering its services to the transportation industry in 2007, Vachani quickly found the need for outsourcing in the industry.
“Most carriers that did not leverage some sort of an offshore company to do something as basic as data capture, certainly were at a price disadvantage when compared to other companies,” he said. - Jon Ross