Freight Invoice Processing: How to Save Time With Carrier Self-Billing

Freight invoice processing efficiency gains are accessible through technology.

Freight bill processing, 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. As highlighted by DC Velocity, “the typical errors are unwarranted reclassification, inaccurate base rates, and additional accessorial and service charges. Some of these errors can be attributed to human error or misinterpreting a contract amid carrier staffing shortages; however, sometimes the carriers are counting on shippers simply paying invoices without diving into the details.”

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.

This type of arrangement allows for faster and more reliable payments, all without making carrier-specific carrier freight bills and documents. Shippers don’t have to spend time making documents or chasing people for payment or signatures.

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

Freight invoice processing has long been done manually. This method is no longer effective in the fast-paced, high-pressure market created by e-commerce sales and shipping. Key benefits of carrier self-billing include:
  • 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.
By utilizing self-billing for freight invoices or carrier billing documents, a company doesn’t have to spend time or money on frequent invoice payment audits. It streamlines the entire process, reduces wasted time, and keeps everyone in the loop regarding current freight invoice terms.

Calculate your potential Saving While Using an enterprise TMS

Reduce Back-Office Billing Costs With an Integrated System

Many shippers cut corners and forgo audit checks to expedite manual invoicing and freight bill processing. Those situations can lead to a range of errors that plague supply chain management teams. They cost shippers a great deal of time and money.
Upgrading to carrier self-billing platforms and implementing a more automated approach to freight invoice processing can help reduce back-office costs and expenses related to billing and invoicing.

Ready to explore carrier self-billing functionality?

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