The solution worked because it replaced a shipment-count proxy with a daily, rate-aware estimate tied to the transportation system.¹

WorkedDid not

Data timing

Daily shipment activity

Simple periodic average

Cost basis

Real tariffs and agreements

Average shipment cost

Cost detail

Lane and product profiles

Profile differences ignored

Visibility

Spreadsheet and dashboard

Limited open-liability view

VTM integrated with the shipper’s TMS so daily shipment activity could feed the accrual process.¹ A rating engine then applied real rate tariffs and agreements to estimate freight costs, rather than relying on a single average across shipments.¹ This preserved the commercial and operational detail that the earlier calculation had discarded.

The rated shipment data and related analytics were delivered through a spreadsheet and dashboard.¹ Finance gained visibility into real-time open freight liabilities, while logistics could identify least-cost-carrier opportunity costs earlier.¹ The reported outcome was the elimination of surprises in monthly cash demand and improved planning.¹ The broader lesson is to make the statement estimate a usable operational view, not a detached month-end number.

Company vastly improved freight accrual accuracy by integrating TMS data daily