Despite transportation optimization, complexity is the standard supply chain descriptor. It's the one constant all managers must address. And it relates to a range of issues within the freight payment process. According to Peter Moore of Logistics Management, the complexity of the payment process is only growing:
"The list of key documents that must be verified and executed in an international shipment includes a commercial invoice, the bill of lading, Customs documents, drayage, and the domestic bill of lading. On top of that, there's a need for tracking information and accurate freight billing.
Today, these are all separate transactions with records. They presented and stored in various places in the shipper offices, the carrier, and the third parties involved. Freight bill payment is a separate and distinct transaction usually still done by matching of documents."
Especially considering recent holiday shipping trends, the challenges are greater. There exists a high potential for payment and invoicing delays. But digital freight data management can hasten and validate the freight payment process. Digital processes ensure current, reliable, accurate, and usable data access. Thus, digital freight management naturally lends itself to improved productivity.
Few things are more disruptive than payment delays. The reason for delays comes down to vital issues with the freight payment process. They often relate to the following matters:
Ultimately, all freight management parties' common goal is to secure faster payments. Remember that faster payments ensure a positive cash flow, which can aid in forming better relationships. Load and order handling, including parcels, becomes dependent on good communication and data analytics. Embracing digital freight management strengthens the whole freight payment process.
Shippers and carriers must focus on providing the absolute best in services. Still, they must maintain a good relationship with all customers. That's where being a shipper of choice can make a difference. Becoming a shipper of choice can represent one of the best ways to increase freight appeal. And it goes both ways, appealing to new brokers while also selling to potential business partners, namely resellers. The cycle also becomes self-propagating. For instance, a hallmark of a shipper of choice is a healthy customer satisfaction rate. That builds a strong foundation for digital freight management processes.
A digital freight payment process typically leverages automation and data to reduce inefficiencies. Top tips for using digital methods include:
For load managers and shippers to succeed and thrive in the new year, automation and digitization of core processes must become the norm. To see how moving to a digital freight management process works, request a consultation with Intelligent Audit. Also, learn how expert data analysis and business intelligence analytics can hasten the freight payment process.
Set up a call with one of our experts to discuss how Intelligent Audit can help your business uncover opportunities for cost reduction and supply chain improvements through automated freight audit and recovery, business intelligence and analytics, contract optimization, and more.
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