Freight claims management logistics remains an elusive process for many supply chain professionals.
While every organization would love to claim a zero-loss ranking, that is not reality. According to Inbound Logistics, “the good news is that damage rates have declined as packaging processes improve, and more shippers use pallets and shrink wrap. Improved shipment visibility has also helped minimize loss. Despite such improvements, damage, loss, and theft continue to occur. Planning for them is key to preventing claims and settling them quickly when they do occur.”
As a result, freight management partners need to know a few things about how the use of application programming interfaces (APIs) can hasten the cargo loss management process, improve accuracy and reduce confusion.
The High Costs of Traditional, Manual Carrier Claims Management
- Damage to the product.
- Damage to the customer-business relationship.
- Damage to the shipper-LSP relationship.
- Inability to recapture revenue.
- Lack of visibility into actual damage and resolution.
- Limited access to understand and prevent future damage.
- Lengthy manual and paper-based processes.
- Errors when entering shipment data that result in delays.
Logistics Claims Management Needs Integration
Additional Benefits of Freight Claims Management Integration
Utilizing an API for improved claims management in logistics is not just a nice-to-have. It’s essential for efficiency gains and maximizing return on investment.
According to 3PL Perspectives magazine, “As technology has advanced and competition to win and retain customers has grown across all technology-based markets, the use of application programming interfaces (APIs) has gained tremendous popularity due to their flexibility, scalability and speed. For the logistics industry, API technology offers real-time, two-way connectivity and communication, which is a game-changer for an industry whose strength relies on accurate, insightful and actionable data.” Furthermore, using an integrated platform to manage freight claims affords significant supply chain benefits, including:
- Increased supply chain responsiveness to file claims as soon as possible.
- Applying online platforms to file claims and create a data trail that highlights potential areas of improvement.
- Giving customers and end-users the ability to initiate claims processes without necessarily contacting the carrier directly.
- Advanced processing and automation that allows for more efficient, effective, and proactive freight claims management.
- Improved customer service levels deriving from less time waiting for carrier claim payments and a faster time to resolution.