This presentation discusses role of WebXpress Solution to prevent some of the frauds and put in place processes to ensure accountability of transactions WebXpress does not claim to solve the gargantuan problem of corruption in the sector- but can help its customer protect themselves to best possible extent

1. Fraud Management
@ WebXpress
Solution Features and Suggested
Processes

2. Outline
• Road Transportation alone accounts for more than 50% of logistics spend
• Over 50% to 70% payments for transportation movement is in CASH
TRANSACTIONS
• As per Transparency International, over 22000 Cr. Of bribes are paid by
transporters on Indian highways every year
• Thus, the sectors is highly prone to frauds and leakages
• This presentation outline some of the methods used by employees/
vendors/ customers to defraud transportation companies
• The presentation also discusses role of WebXpress Solution to prevent
some of the frauds and put in place processes to ensure accountability of
transactions
• WebXpress does not claim to solve the gargantuan problem of corruption
in the sector- but can help its customer protect themselves to best
possible extent

3. Transportation- riven with corruption

4. Various Reasons cited by truckers for stoppages by
Authorities

5. 20% of working time spent in paying bribes

6. Fraud Examples- Never told,
never heard

7. It could happen to you !!
• A leading courier company recently found that over Rs. 70 lakh worth of
To Pay and Paid cash was never submitted to company and was pocketed
by employees
• An express cargo company found that a bets performing region was
actually making ghost booking and deploying ghost vehicles with real
money taken from HQ
• A fleet company found that their vehicles in return journey were showing
very low yield but were actually full of goods of outsiders
• A parcel company in India’s hinterland found that employees were
collecting more amount than reported and were reporting gap as customer
deduction
• Many such examples are bound and India is not alone in such cases. Here
is a report from PWC showcasing global fraud in Transportation Industry:

8. How WebXpress Prevents
leakages!

9. How WebXpress prevents fraud
Fraud Description How WebXpress helps
Under reporting of
load
Booking clerk will report weight as
400 Kg when it is actually 600 Kg. 200
Kg. moves free at company expense
and booking clerk gets a tip from
customer
• Random check of arrived consignments for weight and
volume
• Report DEPS in case of gap and system will raise a TICKET
• Analysis of tickets will help to find branches with
maximum issues
Market vehicle in
place of own vehicle
Branch places market vehicle even
when own vehicle is available. Branch
gets a cut from market vendor.
• GPS on own vehicles will show where they were at the
time of placement
• Job sheet will show whether vehicles were actually
under maintenance
Market rate higher
than actual
Branch places vehicle at rate higher
than available in market and pockets
the difference
• Use WebXpress TAM module to approve every
placement
• TAM will show past tend of rates for same lane
• Also, random calls to market brokers will provide real
rate

10. How WebXpress prevents fraud
Fraud Description How WebXpress helps
Extra placement Branch places more vehicles than
required stating more stock or urgent
service request.
• Monitor vehicle load factor and raise alert for low load
factor
• Work out schedule of vehicle placement and block a
schedule once used
Ghost vehicles No vehicle is places and dummy
documents are created
• Insist on system generated Challans.
• They require system entry of LR and LR requires real
load.
• Do not allow same vehicle number once used till the
time it is freed at another location
Multiple payments for
same vehicle
Vendor submit same challans
multiple times over time and get
payments
• Vendor bill is booked in system before payment
• WebXpress never allows same challan to be booked
more than once- EVER

11. How WebXpress prevents fraud
Fraud Description How WebXpress helps
Request for more cash
than needed
Branch asks for cash for expense on
advance, conveyance, office expense etc.
even when they have cash in hand
• WebXpress provides ONLINE view of CBS of each
branch and also of collection outstanding
• Branches will get advance based only on online
balance. If branch has not updated system, more cash
will show
Late collection or non
reporting of paid and
to pay
Branch does not collect payments in
time. Or it actually collects but does not
report.
• Paid and To Pay outstanding reports will help HO
focus on collections
• Daily SMS alert can be sent to branches for collection
of outstanding
Wrong reporting of
deductions for cash
collection
Branch collects Rs. 3000 but reports only
Rs. 2500 were collected and show gap as
deduction
• Send SMS/ e-mail to customer stating collection and
deduction amount
• Also send help line number if he feels wrong data is
sent
• This will ensure HO will know wrong deduction as
customer will not accept wrong data

12. How WebXpress Prevents
leakages!

13. Leakages
• Not all loss is dues to frauds, a much larger amount of loss
is due to leakages and inefficiency of operations
• WebXpress can be used to build practices that will prevent
or reduce many of these leakages
• Needless to say that organizational practices need to be
aligned with WebXpress system for best results

14. Prevention of Leakages
Leakage Description How WebXpress helps
Late billing LR remains unbilled for a long time due to
various reasons- POD non arrival,
comments by customers, large volume
etc.
• WebXpress can be used to scan POD and start audit as soon as
delivery is completed
• PODs that are audited can be parked as APPROVED FOR BILLING
• Thus, bill can be expedited quickly and bills submitted once
PODs arrive
Late submission Bills are sent to branch but not submitted
to customer in time
• WebXpress can be used to note submission details. It can then
be used to track unsubmitted bills
• Also, bill acknowledgements can be forwarded with a scanned
copy
• Electronic bills can be submitted to customers where acceptable
Bill rejection Bills are rejected by customer due to
wrong contract details, wrong rates. Many
a times contract is revised but bill is made
with old rates
• All contracts can be entered in system and LR can get rates
automatically. If contract is expired, LR can not be made
• This will ensure that bills are correct and rejection is minimized

15. Prevention of Leakages
Leakage Description How WebXpress helps
Recovery of deduction s Customer provides details of deduction
quite late. If the same is not investigated,
it can happen that wrong deductions are
made
• WebXpress recovery module tracks every deduction against
every LR
• This also helps customer work with customer and recover
amounts where possible
• This can be recorded against the LRs
• Also deduction by customer can be recovered from vendors or
employees
Rate enforcement Users enter the rate as they see fit to get
business from customer. This results in
loss to company
• Standard contracts, yield limits, minimum charges, weight etc.
can be entered in WebXpress system
• LR entry can then be done only in accordance with contracts
or standard rates. This will ensure minimum business for
company at no loss
Last mile cost control Delivery to customer premises from hub
is last mile delivery. Many a times
delivery cost per Kg is much higher
• WebXpress can be used to focus on pick up and delivery cost
per Kg.
• This will help to ensure that there is no excess payment in last
mile

16. Prevention of Leakages
Fraud Description How WebXpress helps
Vehicle
Underutilization
Branch/ Hub places vehicle with less than
optimum load due to “operational reasons”
• A rule can be set that any vehicle must be
utilized to say at least 70% of capacity, else
approval needs to be granted
• Cost per KGKM rule- the cost and load in
vehicle should be such that it meets cost per
KGKM criteria protecting margins
Underutilized route
segments
In a multi-point route, a particular segment is
run less than optimum
• WebXpress route analysis can help to monitor
trend in segment wise usage of a route

17. Thank You
info@webxpress.in www.webxpress.in
KEEP IN TOUCH
Headquarters Regional Sales Office
114, Sundervilla, S. V. Road,
Santacruz (West), Mumbai – 400052
+91 93 232 428 02
+91 22 325 735 60
ECFY Consulting Pvt. Ltd.
107, First Floor, Suncity Trade Tower,
Sector–21, Gurgaon – 122001
+91 93 117 363 59