Financial visibility is a leading concern in transportation. Across the spectrum of freight management parities, everyone is looking for the next goose that will lay a golden egg, and in freight management, that goose comes in the form of technology. Freight payment technology holds the promise of faster, more efficient payments and lower credit risks. However, it cannot be evident to new startups in the industry and can even lead to missteps for the most experienced entities. Let’s take a closer look at how technology enables freight payment visibility to truckers and fleets.
Why Do Truckers Need Freight Payment Visibility?
The short answer is that truckers need freight payment visibility due to the rising complexity of logistics and transportation. According to CNET, "Though the modest-size demonstration went mostly unnoticed by the American public, it represented something larger that affects us all. Truckers are intrepid pilots of the highway, collectively traveling 450 billion miles each year and carrying 11 billion tons of merchandise, electronics, supplies, and products to consumers." That level of activity will only increase going forward, making tracking payments and managing cash flow more cumbersome. Furthermore, inefficiencies in freight payment management leave money on the table. For example, according to a 2016 report by The Economist, businesses lose around $50 billion each year due to poor visibility of freight expenses.
Freight Payment Technology Creates Value Through Automated Payment Processing
Technology has come a long way in freight payment processing. It now enables companies to automate the entire process. This not only speeds up the process but also helps reduce the risk of errors. In addition, automation allows for greater visibility into the payments process. This helps ensure that everyone involved stays updated on the latest developments.
Automated freight payment technology software can help companies reach their goals with less hassle. This is especially true for freight brokers looking to accept payments electronically. However, it can also be helpful to fleet owners and direct customers who need additional visibility into the supply chain process. The best freight payment technology provides critical metrics that allow everyone involved in the transaction to understand their financial well-being.
It Alleviates the Burden of Managing Short-Term Cashflow.
Using technology also reduces the stress on truckers and smaller fleets that need to reduce their credit risk and exposure to new and upcoming shippers.
The freight payment technology options available in the market today, including freight matching tools and freight payment networks, enable companies to keep track of invoices paid through freight payment technology every step of the way.
This is important because freight payment goes directly from shippers to carriers without third-party processing. It usually takes at least 30 days, if not 90 days, for truckers to receive their money after delivery. This can be a massive burden for smaller fleets that often need short-term loans to finance operations for this duration.
In addition, freight matching services ensure accuracy throughout international trade by providing complete visibility, from pickup through the last mile. Paired with freight payment technology and visibility, this culminates in improved compliance with regulations.
For example, new surcharges and regulations are part of any trucker's management burden. However, tying all payment processes into a singular system helps to ensure those costs and risks are not overlooked. Furthermore, the integrated networks enable more productivity to move more loads, capitalize on the best-paying loads and repeat the process.
More Freight Payment Technology Integrations Can Power Analytics to Measure the Health of Trucker Stability and Fleet Operations.
Owner-operators and fleet managers can use freight payment analytics to measure trucker performance and fleet efficiency. Payment analytics can provide insights into how freight is being moved and paid for and identify areas for improvement. For example, freight payment analytics can help owners and fleet managers understand which trucks are used most efficiently and which ones could improve. This information can help with routing decisions and freight allocation. Payment analytics can also help identify suppliers that are not meeting expectations regarding quality or delivery time so that corrective action can be taken. Overall, freight payment analytics can help improve a transportation organization's efficiency and performance.
Find Your Money Faster With High Visibility Through Freight Payment Technology.
Owner-operators and fleet managers need freight payment visibility to make sound business decisions about their current financial stability. ComFreight's HaulPay provides this visibility through automated invoice processing, which reduces hassle and risk in managing cash flow while improving regulatory compliance. Request a demo of HaulPay today to see how we can help you make the most informed decisions possible for your business.
