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Corporate Location:
Peter Daly - Director
30665 Northwestern Hwy
Suite 160
Farminton Hills, MI. 48334
PH: 248-419-7100
FX: 248-419-7101
sales@totalclaimsmgt.com
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Cost of Filing a Freight Claim
What are the Costs Associated with the Filing of Transportation Freight Claims?
To manually file a claim:
- There are the man hours involved with filling out the claim form, gathering of the supporting documentation, mailings to the carriers, filing and photo copying of the paperwork, follow up phone calls, faxes and emails, and the posting of payments.
- There are the actual costs related to postage, long distance phone calls and faxes.
- There are costs related to the development of reporting procedures to manage the claims process and the issuing of the reports.
This translates to an administrative cost of $65-$100+ per claim.
These are the obvious costs, but what about those costs that arise from mismanaged claims; those claims that are not filed or get lost in the shuffle? What about the loss of customer goodwill?
WHAT DO FREIGHT LOSSES REALLY COST IN TERMS OF SALES REVENUE TO YOUR COMPANY?
Does your upper management realize that it takes $100,000 in sales to make enough net profit to offset a $1,000 transit loss, if you are operating at a 1% ratio?
If your operating ratio is higher, apply this table to determine the cost in terms of lost sales revenue.
| If You |
A CLAIM FOR |
| operate at |
$50 |
$100 |
$200 |
$300 |
$400 |
$500 |
$1000 |
| Net Profit of |
EQUALS SALES OF |
| 2% |
$2,500 |
$5,000 |
$10,000 |
$15,000 |
$20,000 |
$25,000 |
$50,000 |
| 3% |
1,667 |
3,333 |
6,667 |
10,000 |
13,333 |
16,667 |
33,383 |
| 4% |
1,250 |
2,500 |
5,000 |
7,500 |
10,000 |
12,500 |
25,000 |
| 5% |
1,000 |
2,000 |
4,000 |
6,000 |
8,000 |
10,000 |
20,000 |
| 6% |
833 |
1,667 |
3,333 |
5,000 |
6,667 |
8,333 |
16,667 |
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This table furnished by the Transportation Consumer Protection Council, Inc. www.transportlaw.com.
Contact Total Claims Management to see how you can reduce the costs associated with the filing and management of transportation freight claims for your company. The timely filing and processing of claims via the latest web based technology and programs from TCM will translate to improvement in your company's bottom line and enhancement of customer satisfaction. The reporting features will enable your company to manage the claims impact on your business.
TCM: Total Claims Management, Inc.
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