Case Study: Introduction of a Freight Cost Tool – Logistics

The Freight Cost Tool integrates an automated, document-based freight cost calculation with a comprehensive reporting and analytics platform. As part of this project, we not only launched the initial solution for precise transport-cost determination but also, in a second phase, evolved the tool into a holistic management system for all inbound and outbound flows.

The deployment of our Freight Cost Tool at a leading industrial enterprise underscores the importance of an automated, document-based freight cost calculation for modern supply chains. The goal was to replace labor-intensive manual calculations with a reliable system. In Phase 1, we developed a Java application that automatically ingests all relevant SAP document data, links it to stored carrier rates plus diesel and toll surcharges, and thus fully documents the “pure” transport costs. We leverage the Google Maps API for precise route calculations, eliminating error-prone manual distance entries. An intuitive interface enables users at every site to generate cost analyses quickly and confidently and to export results to Excel at the click of a button.

Building on this solid foundation, Phase 2 extended the solution into a comprehensive freight-cost management suite. We implemented a batch engine capable of calculating hundreds of shipments in a single run and integrated a rule-based tariff engine that automatically applies complex zone rates, weight tiers, and custom surcharges. Simultaneously, we expanded the tool to support additional transport modes—from road freight to rail, sea, and air—and seamlessly connected it to Power BI. All transport and cost data now feed into interactive dashboards, giving decision-makers a real-time, data-driven basis for action.

Thanks to this two-stage approach, the company now enjoys a drastic reduction of processing times for freight-cost determination, complete cost transparency across all shipments, and substantially improved efficiency. What once took hours now runs fully automatically in minutes. High-volume analyses uncover savings opportunities quickly and support negotiations with logistics providers on a solid data foundation, while the system has already been rolled out to multiple sites without additional customization.

This project demonstrates that a modular architecture, automated workflows, and flexible reporting integrations are the pillars of modern freight-cost management. If you too want to manage your transport costs transparently, comparably, and efficiently, contact us or schedule a meeting.