If you’re an Ecommerce brand owner or operator, you may be familiar with the feeling of finding it difficult to decipher the costs associated with third-party logistics (3PL) and other operations services, often due to the complex and detailed nature of invoices. This makes it quite difficult to understand your true spend, profit, and therefore company success. That’s why we want to tell you about our warehouse page, designed to simplify the process of understanding invoices from 3PLs.
The warehouse page uses machine learning to categorize invoice data into cost buckets, allowing users to easily review and analyze their expenses over time, compare them against sales, and identify any unusual charges. The goal is to demystify the costs associated with these services, making it easier for brands to manage and analyze their expenses without needing to scrutinize each line item of their invoices.
How It Works
With the help of machine learning, we ingest and interpret various formats of invoices (e.g., PDFs, CSVs, Excel files). After analyzing a few examples, it learns to categorize different line items into cost buckets. Users can set up forwarding for their daily invoices to feed into this system, where the categorized costs are displayed on the warehouse page. It also features an alert system for unrecognized or abnormal costs.
The page provides a detailed breakdown of costs categorized into different buckets. Users can delve into these costs to observe how they change over time, view specific invoices and their associated charges, and compare these expenses against sales to understand the cost makeup of sales over time. The alert system also notifies users of any costs that are unrecognized or unusual.
How Has Octup Helped Underoutfit?
Ecommerce brand Underoutfit benefited from using Octup by discovering and halving previously unnoticed avoidable fees, ultimately saving significant amounts of money each month. The unnoticed avoidable fees amounted to a staggering $40,000 a month!
The system alerted them to fees that were not understood initially, enabling them to investigate further. This led to the discovery that the fees were related to how their products were processed before storage. By addressing this issue with their manufacturer, Underoutfit was able to reduce these costs by half, saving about $20,000 per month.
To Sum Up…
You’ll notice an immediate benefit once you make use of our warehouse page.
Here are those benefits summed up:
- Time Efficiency: Eliminates the need to manually review each invoice line, saving significant amounts of time.
- High-Level Insights: Provides a clear understanding of charges in relation to sales percentages and cost categories.
- Alert System: Notifies users about unusual or excessive charges, especially those categorized as 'Uncategorized'.
- Informed Decision-Making: Utilizes invoice data to enhance the unit economics page, aiding in the analysis of SKU profitability.
- Profit Margin Analysis: Helps in assessing profit margins to support more informed pricing and cost management strategies.
If you’re interested to learn more about how this could apply to your business, don’t hesitate to reach out to us for a demo!
Related Posts
