Abstract: Logistics is normally outsourced to Logistics Service Providers(LSPs) by Customers so that they can continue to focus on other important activities that they are specialized in, which improves efficiency and lowers logistics costs. Selection of LSP, optimal pricing and performance of the LSP has a significant impact on the profitability of the company and customer satisfaction. Currently, the process of issuing Request for Quote (RFQ) to LSPs, securing rates, negotiation and selection of LSP is done manually either over phone/mail and managed through spreadsheets. The current process is not transparent and not very efficient due to manual processes. Further, verification/audit of freight bills is done manually which is prone to errors and does not address the issue of excess/double billing. Assigning of General Ledger (GL) codes to freight bills during accounting of freight costs, (based on shipment parameters), i.e being done manually through excel sheets, With increase in demand for logistics due to free international trade, there is a requirement for a cloud based Business to Business(B2B) e-commerce tool which offers companies to secure quotes, negotiate rates, facilitate submission of freight invoices by LSP and enable companies to verify freight invoices against agreed rates.. This paper discusses “AirfreightPro”, a collaborative cloud based tool which attempts to solves the problems faced in existing system by automating the freight contracting process right from issue of RFQ, securing rates, award of contract and also enable LSP to submit freight invoices online to the Customer. The tool makes use of “Blockchain” methodology of distributed ledger to facilitate timely payments and avoid excess payments.
Keywords: Logistics Service Providers(LSPs), Customer, Invoice-Audit, Orders, AirfreightPro, GLCode, Request for Quote (RFQ),Blockchain.
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DOI:
10.17148/IJARCCE.2020.9523
