Leading European Grocery Retailer Automates $330M global freight spend with AI

Legacy system bottlenecks crippling operational efficiency

The retailer's freight payment processes were heavily dependent on a legacy system that had been out of support for years. Running on outdated technology that couldn't be migrated to the cloud, the system had become a critical business risk, especially when the shipper was handling a substantial annual freight spend of more than $2.5 million. Their freight contracts and rate management were disconnected, relying on customized solutions and spreadsheets that made real-time updates impossible. 

The process of identifying invoice discrepancies was particularly challenging, with disconnected shipment data and lack of granular rate management during post-audit. This resulted in payment inaccuracies and potential revenue leakage. The retailer's invoice approval to payment workflow was siloed, requiring significant manual intervention that created bottlenecks in the process. 

Carrier coordination for clarifications or dispute management was entirely manual, leading to payment delays and strained relationships. Additionally, incorrect GL code mapping and incomplete data translated to inaccurate freight cost allocation, making it difficult to analyze true transportation costs. 

Our legacy system simply couldn't keep up with the complexity of our modern logistics operation. The workarounds we created were increasingly unsustainable, and the lack of integration was preventing us from developing our business processes further.

- Head of Transportation

Achieving 90% productivity gain via automation

Digitalized integrated rate management system

Pando's solution provided a fully digitalized, integrated, and configurable rate management system that enabled real-time rate updates. This eliminated the dependency on spreadsheets for carrier management, fuel prices, and billing rule maintenance, bringing everything into a single platform with AI-powered capabilities.

The transition from our spreadsheet-driven process to Pando's integrated platform was seamless. We now have a single source of truth for all our freight rates.

- Finance Manager, Accounts Payable

Automated comprehensive costing and invoicing system

Pando's solution enabled 100% base freight costing with 10+ accessorials configured, of which 7 are automatically calculated. The system processes shipments costed on Tuesday with invoices posted on Friday within 5 days, handling more than 80,000 shipments every month. This streamlined process generates approximately 30 invoices weekly worth €28 million monthly, ensuring accurate and timely billing.

Closed-loop invoice approval workflow

Pando's solution created a closed-loop process for invoice approvals integrated with the payment system. This streamlined the entire process from invoice generation to payment, eliminating manual interventions and reducing processing time significantly. The tolerance-based approval workflow setup further reduced the need for human intervention.

End-to-end platform for carrier collaboration

The unified platform supported real-time carrier collaboration with facilities for clarifications, disputes, and payment status updates. This eliminated the need for manual coordination, reduced payment delays, and improved relationships with carriers by providing transparency throughout the process.

Accurate automated cost allocation system

Pando's solution provided accurate freight cost allocation with dynamic and automated GL code mapping against transportation expenses. This ensured that all freight costs were properly allocated, eliminating errors and providing clear visibility into transportation costs across different business units.

Advanced analytics with configurable dashboards

The implementation of advanced freight spend analytics with pre-configured reporting dashboards within the module transformed isolated data into actionable insights. Stakeholders gained access to comprehensive reports on billing rules, cost calculations, and transport performance, enabling informed decision-making and continuous improvement.

The analytical capabilities of the Pando platform have been transformative. We now have clear visibility into our freight spend and can make data-driven decisions to optimize our transportation network.

- Director, Transportation Intelligence

The transformation of the retailer's freight audit and payment process through Pando's AI-powered solution has delivered remarkable results. The automation of $330 million in global freight spend, processing of 20,000+ weekly shipments processed within 5 days, generating €28 million in monthly invoice value, and 90% productivity improvement represents a significant return on investment. The system's ability to handle 100% base freight costing with 7 automated accessorials out of 10+ configured demonstrates the comprehensive nature of the solution. Beyond the quantitative benefits, the solution has provided the retailer with the agility and scalability needed to support their growing business, while eliminating the risks associated with their outdated legacy system. The implementation sets a new standard for freight audit and payment processes in the retail industry, demonstrating how digital transformation can drive both operational efficiency and strategic advantage.