Freight Bill processing comprises a hefty series of tasks involved in shipping. The carrier generates invoices, which reflect freight information such as the freight’s description, name of the shipper, weight, point of origin and charges applied. It is the responsibility of the logistics and account team to keep track of the freight bill processing activities. They must carry out the tedious task of matching the invoices, ensuring accurate and timely payments, and maintaining data reliability.
According to industry studies,75% of logistic leaders believe there is a minute disparity between the freight invoice and the final quotation they receive. Other studies show that 60% of the freight bills do not match the final quotation, and the errors go unnoticed in 20% of such cases. Such errors generate numerous consequences, some of which are discussed below:
- Duplicate Payments
The carrier and freight provider may each produce bills for the freight, thereby generating duplicity and creating duplicate payments.
- Inefficiencies Due To Discount Rates
When promising discounts, freight bills vary from the actual quotations. If this data is not recorded systematically, it can lead to discrepancies and inefficiencies in the entire process.
- Delivery Address Mismatch
If the delivery address is inaccurate or not stated correctly, it can lead to delayed delivery or even missed shipments.
In inconsistencies between the original quotation and freight invoice, there is scope for overpayments.
How Can Outsourcing Help
Businesses can reap immediate tangible benefits through outsourcing their freight bill processing activities.
Errors get minimized
The company may experience errors related to incorrect pricing, double billing, billing of incorrect amounts, and overdue invoices. Outsourcing the process ensure the entire task of freight bill processing gets done in an error-free manner.
Outsourcing the task would help the company in achieving an improved turnaround time.
Outsourcing the freight bill processing task can help the business with cost optimization. It ensures the companies to focus on streamlining their existing processes. They would not be required to place reconciliation checks along every stage of the process, and it would also free up their resources to work on increasing productivity.
Companies can benefit from an organized freight bill processing structure by outsourcing the entire task. The business managers can access a well-recorded comprehensive database to draw further analyses.
ARDEM provides end-to-end, fully managed and secured logistics outsourcing services to its clients, from issuing load statements to freight billing and auditing. The automation process of handling the freight bill payment processing serves is a cost-efficient solution as it offers less cost to process each invoice. A blend of ARDEM’s exquisite data entry services along with its automation tools helps provide operational and cost efficiency to its clients.
The trucking and logistics platform automation helps ARDEM improve efficiency for its clients. ARDEM has a history of providing well-structured solutions to its clients. With its state-of-the-art technology, ARDEM provides a distinguished platform to ensure the freight bill processing task becomes a core competency for its clients.
ARDEM provides Business Process Outsourcing and Business Process Automation Services to established companies to help them improve operational Efficiency and Reduce Costs. For more information please reach out to us at email@example.com or call us at 908-359-2600.