Trucking is a very labor-intensive industry. Companies require skilled workforce for every vertical of the business. The trucking industry has faced a lot of additional unforeseen challenges over the last year owing to transport freezing and stoppage of cross-border trade in the wake of the pandemic.
With rising freight charges and inflated commodity rates, trucking companies are facing cost control issues. The pandemic has challenged the trucking industry globally even while, some areas of the medical field kept the trucking companies afloat during the pandemic.
The pandemic has brought changes in almost all industries. Companies and industries have started depending more on technology to handle macro as well as micro level tasks. In the wake of the pandemic, all the large companies in almost every industry have shifted their focus on outsourcing their work. It helped companies cut down their working capital cost. The continuous lockdowns affected their income statements as these companies were used to having permanent staff for the work that could have been outsourced.
In view of the changed work dynamics, the trend for back-office outsourcing has been on the rise. Back office services can be handled effectively without engaging in-house staff. Since the work requires professionals, it would increase the hiring and staffing costs for the company. Hiring professionals for such kinds of jobs increases the variable costs for the firm. Therefore, back-office outsourcing benefits the company by eliminating the hassles of hiring additional staff as well as the costs associated with it.
The more you outsource, the more you can focus on the core revenue generation aspect of the company. As an entrepreneur or an executive of a company that is striving towards the position of the market leadership, your focus is mostly on sales, revenue and enhanced product quality and not on other routine tasks of the business. Hence, outsourcing offers an excellent opportunity as a time and cost saving opportunity.
Importance of Back Office Service Providers
The processing of Freight Bills is an important Back-Office process. Outsourcing one of the most important back-office services. A freight bill consists of information regarding the product, its weight, the point of origin, name of the shipper, and charges. Process Improvements can be achieved by outsourcing this repetitive however critical back-office process.
Outsourcing freight services offers some great advantages such as cost-saving, less time-consuming, and better customer service. In detail:
Trucking companies specialize in moving products from one place to another in fixed time duration. However, to handle their billing, data entries, and to handle other labor-intensive vertices companies prefer outsourcing the job. It saves the company money. The money that goes in for hiring extra staff and needed facilities to house staff is saved and diverted into other revenue-generating schemes.
With the rapid advances in technology, jobs that were earlier effort intensive, are now being handled by machines, and, artificial intelligence. Outsourcing companies are able to provide specialized technology-related services. Assignments such as scanning paper bills and other transportation-related documents is used for processing freight bills. The labor effort is saved and the process is completed quickly and accurately.
These companies have an expertise in providing outsourcing services, thus they eliminate the need of extra workforce for the client-company and smoothly take up the time and labor intensive work from the client. This eventually increases efficiency, saves time and lowers the cost for the client company.
Quick Processing of Bill of Lading
The freight service can be provided right after the bill of lading is created, approved, and uploaded. The process of invoicing begins by generating the bill of lading. Outsourcing companies can improve the freight bill processing time. If the bill of lading is generated faster, the invoice is also created sooner resulting in quicker cash cycle for the trucking company.
This also helps increase customer satisfaction which is crucial to compete in the expanding service industry. The trucking company can outsource the entire process of bill of lading creation and invoicing to a professional outsourcing company. The trucking company does not have to manage staff or, worry about daily workload fluctuations.
Customer service is the differentiating factor between a good and a great company. When your services are standardized, the customer feels assured about the timely and efficient delivery of the assured services.
Outsourcing companies are often a one-stop service solution well equipped to handle the entire procedure. Teams are qualified and trained professionals who have detailed knowledge in the processing of freight bills whether structured or unstructured.
When a trucking company outsources the work to an expert, they can assure their customers of the highest quality standard outputs. The quality of work is calculated by looking at the number of errors made. Accuracy of the freight bill is critical, you do not want shipments to get routed to the wrong location.
Outsourcing service providers are able to provide exceptional accuracy. This is a result of them being focused on the particular processes outsourced to them unlike the trucking companies who need to focus on multiple other business verticals.
Generate Higher Revenue
Being able to process freight bills faster and having the ability to rapidly scale the volume of freight bills processed allows trucking companies to increase their revenue.
The management time saved in managing large work teams can instead be used to generate more revenue streams. Additionally, higher accuracy levels lead to more customer satisfaction.
Auditing Service Helps In Saving Revenue
When trucking companies outsource bill processing, the outsourcing company can also provide the needed auditing services. Examining rates, and checking for bill errors can further improve results at the trucking company.
Auditing bills and payments help in getting things on track and keeping the billing process error free. It saves time and money for the trucking company
Outsourcing and automation experts that offer fully managed logistics services offer scalable solutions to the companies in the logistic industry. Outsourcing Service providers improve back-office processes and offer high accuracy, fast turnaround and a cost effective business solution
Consistency and standardization are two important aspects of running a successful logistic enterprise. A business process automation and business process outsourcing company is able to help a logistics enterprise succeed. An outsourcing partner will focus on building mutually beneficial and long-lasting relationships with their 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.