Banks and financial institutions are high volume shippers. In this QAD Precision Report, we look at the relationship between transportation execution, customer satisfaction and financial success.
How Transportation Execution Helps Banks Keep Customers Happy and Continue to Grow
Banks and financial institutes spend a lot of money annually on shipping. Deloitte and Touche estimated that the costs of handling money exceed $300 billion annually. Although many documents can now be transferred electronically, banks and financial institutions still incur significant costs to ship physical documents across town and around the world. This can be an expensive process, in terms both of financial loss associated with lost currency, as well as documents and other valuables. In addition, there is the possibility of lost customer goodwill when shipments arrive late, or not at all.
These factors result in a critical need for banks to ensure that not only are the documents and other items they ship well protected, there is also a need to ensure those shipments arrive on time. Security and compliance issues are the key concerns that are changing how the financial industry ships. All of these factors combined mean that banks and financial institutions must adopt solutions to manage their shipping and improve customer service.
Transportation execution systems are allowing financial institutions to do just that. Transportation execution allows these institutions to move sensitive materials much more securely and reliably than a more “cobbled together” approach. Transportation execution systems for financial institutions are robust shipping logistics solutions that allow banking institutions to optimize routing and reduce costs while increasing the accuracy of shipment data and enhancing visibility into the real-time location of each shipment.
Banking Transportation Execution in the Real World
Sounds great, but how does this play out in real life? One example might be a credit card company that needs to help a customer who lost a credit card while traveling. Nothing can be more stressful than losing a credit card or other important documentation while you are away from home. In a case like this, the bank needs to be able to serve the customer quickly and securely.
Transportation execution allows the financial institution to replace the card and deliver any necessary documentation quickly, ensuring that it arrives on an accelerated time-frame using the quickest possible route, without inflating the cost of delivery. A transportation execution system makes it easy for the bank to find the lowest rates and the fastest delivery time frame, while also providing better tracking and measurement to ensure the delivery gets to the right person, on time, so that they can get on with their trip.
Where's My Shipment?
Of course, transportation execution is not all about getting the right items to the right person at the right time. Sometimes it’s important to ensure that the items were handled properly en route. Due to anti-money laundering regulations, and concerns over issues such as privacy and theft (including identity theft), financial institutions have a heightened responsibility to more carefully monitor chain of custody – to know who handled each and every item, from source to destination – for many of the items they ship than most other industries.
Transportation execution applications offer a solution to these challenges. In addition, transportation execution delivers enhanced insight into the status of shipments throughout your supply chain and transportation logistics operations, so that financial organizations can monitor chain of custody for all important shipments. The solution also offers a more complete audit trail so that institutions can document compliance with regulatory requirements such as Sarbanes-Oxley. Organisations can also confirm that proper workflow and procedures were followed from the time shipments are picked up, through their facility, all the way to their destination.
The software itself also needs to meet certain security requirements. Because financial institutions handle not just money but critical, personally identifying information, any transportation execution system used by a financial institution or services company must be as secure as possible. Adherence to standards such as those developed by the Open Web Application Security Project (OWASP) ensures that shipment data and personal information is kept as secure as possible.
Returning to our example of the traveler with a lost credit card, the importance of issues like chain of custody and secure data are clear when we think of the ramifications to the customer should his replacement card or other documentation be lost or stolen during the process of replacement. Or worse, if the application used to ensure his shipment arrives safely and on time is later used by hackers to obtain personally identifying information. These examples illustrate the importance of selecting a secure and robust Transportation Execution system.
The value of shipment execution systems to the institution itself goes beyond streamlining shipping processes and meeting customer expectations. Shipment execution also allows banks and financial institutions to reduce cost by optimizing rates and routing, and providing reporting and analytics tools that can help institutions find ways to cut costs.
How can transportation execution help reduce costs?
- Transportation execution solutions can include sophisticated rate shopping tools, making it easier for banks and financial institutions to compare best prices to ship their items, whether shipments are individual parcels and documents, or bulk shipments. This takes the guesswork out of selecting a shipper.
- Transportation execution also provides reporting and analytics tools that can be configured to handle complex logistical analysis to help you find better shipping strategies for all your shipments and cut costs even further.
The Final Analysis
Banks and financial institutions need to provide excellent service to their customers while also ensuring packages are delivered on time and at the lowest cost. When your customers can be anywhere in the world, a unified transportation execution system delivers a global perspective into your logistics operations so that you can meet the needs of those customers safely, securely and on time, wherever they may be.
About QAD Precision – Trusted Global Trade and Transportation Execution
QAD Precision (Precision Software), a division of QAD Inc., provides industry-leading global trade management, transportation execution and multi carrier shipping software solutions from a single, integrated platform. Preeminent industry leaders in every region of the world rely on QAD Precision’s global support centers to leverage thousands of carriers and manage millions of shipping transactions every day. Our open architecture easily integrates with Enterprise Resource Planning, Warehouse Management Systems and legacy solutions. An ISO-certified company, QAD Precision assists companies to minimize shipping costs, optimize first mile and last mile deliveries, automate free trade agreement compliance, avoid customs delays and mitigate the risks associated with dynamic trading environments to maximize their competitive advantage. QAD Precision’s customers span multiple industries including banking and finance, life sciences, high technology, retail, industrial, automotive, higher education and public sector as well as logistics providers. For more information about QAD Precision, visit www.qadprecision.com.
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