3 Reasons Reconciliation process is imperative for Logistics Companies

3 Reasons Reconciliation process is imperative for Logistics Companies

1.  Ascertain “Accurate” profit:


When Operation Department close “files”, profit is determined using accrued costs based on quotes received from vendors. This profit then is the “Potential” profit and not the “Accurate” profit.

To determine the “Accurate profit”, bills received from vendors have to be matched and reconciled against the accrued costs. Revenues issued have to be approved by the customers for validity. Then and only then can we ascertain the “accurate” profit per file.


2.  Validate “Selling” rate:


When all Cost and Revenues have been reconciled we then can validate if:

  1. The selling price meets the potential profit guesstimated- no change is needed
  2. The selling price falls short of the potential profit guesstimated- price module needs to be revisited
  3. The selling price exceeds the potential profit guesstimated- use as benchmark for future price module or guideline to reduce current price.


3.  Enhance cash flow:

Timely reconciliation as the base for collection and cash disbursement will ensue:

  1. A healthy balance between the cash inflow and cash outflow ratio
  2. Sufficient attention to the accuracy of bills, invoices or credit terms will be insured




To get the maximum benefit from Reconciliation,  Automate the process. Let AO Logistics show you how.

Email us: info@aologisticsrec.net Or click below to sign up for a demo.

Sign Up for a Demo