We all know freight invoice processing, freight invoice audits, and cost management are critical parts of carrier and transportation management. But dealing with carrier freight bills and managing freight invoices can quickly become time-consuming.
As demand increases for faster and more reliable shipping services, so, too, has the need for a reliable method of dealing with billing and invoicing.
Inbound Logistics contends that outsourcing the freight audit and payment activities offers benefits.
“In addition to cost reduction, outsourcing the freight audit and payment function enables shippers to reduce time spent on tasks like collecting carrier invoices, conducting freight invoice audits, making payments to carriers, and pulling detailed reporting on freight costs and services.”
Improving freight invoice processing services with carrier self-billing streamlines critical processes while significantly reducing the opportunities for costly errors.
What Is Carrier Self-Billing?
Carrier self-billing is an innovative approach to freight invoice management that allows carriers to be paid at an agreed rate or a flat fee.
Shipment delivery, load acceptance, and payments are finalized and processed according to contract terms. It saves time for shippers and carriers alike and makes freight bill processing and parcel routing expense management more streamlined.
How Carrier Self-Billing Streamlines Freight Invoice Processing
Enhanced freight invoice recordkeeping
Knowing the moment carriers submit a payment or respond to an invoice makes it easier to track payments in real-time. All payments can be routed directly into a transportation management system (TMS), along with all pertinent documents. Everything is safe, secure, and easily accessible whenever necessary without a bulky paper trail.
Stronger business relationships
Full automation with standard freight bill processing improves overall visibility and transparency in the supply chain network. It also allows for better collaboration through the payment process by minimizing errors and building stronger relationships with carriers thanks to smart transportation advancements.
The best freight transport rates
Freight invoice processing is all about getting paid the correct amount as quickly as possible. Innovative systems and self-billing options make it easier to negotiate (and renegotiate, if needed) the best freight transportation rates. It ensures shippers get fair market rates. Carriers get paid what they are owed.
Improved management operations
Often, shippers get tied up with the labor-intensive, time-consuming process of securing invoice payments. Meanwhile, other essential processes, critical services, and necessary tasks get overlooked or delayed. Setting up a self-pay carrier freight bill system frees up management to focus on supply chain optimization.
