It is very important to realize that this traditional model has been in place since the 1920’s. It is also important to monitor your freight payment and audit service closely, as some companies have misappropriated funds. To avoid this potential pitfall, address the below list with your provider.
Financial security
Does the freight payment provider have audited financial statements, is it ISO certified and does it have an annual SOC II review, and at least a $1 Million Employee Dishonesty Bond?
Client service
How does the freight payment provider track client service issues to resolution? What types of key performance indicators does the provider maintain?
Carrier relations management
Does the provider have a committed staff committed maintaining outstanding carrier relations? Do they meet with carriers to communicate, resolve issues, and create efficiencies that benefit all parties? How do your carriers view provider?
Document imaging
Are all hard-copy bills scanned, with images made available on the provider’s website, and also on DVD or CD?
Web-based data access
The freight payment provider’s site should include standard and ad-hoc reports, drilldowns, mathematical calculations that result in new fields, client-driven report scheduling and onscreen and email report delivery.
Coding, editing, and validation
How comprehensive is the freight payment provider’s ability in this area? Can it derive cost centers from other data elements? Rules should be table-based and event-driven to ensure that updates are made quickly and easily.
Freight liability
How does the provider determine if the bill should be paid? Does it ensure supporting documentation is attached? Can they perform electronic validations to your bill of lading or purchase order file?
Web-based bill repair
Can freight bills that need client approval be repaired from the provider’s website? Can you easily view images of the freight bill and supporting documentation to resolve bills that are being questioned?
Parcel shipment capabilities
Does the provider have the ability to meet the integrated carrier’s requirements to obtain refunds for late delivery shipments that are manifested but not moved? Does it provide address correction and break down all miscellaneous charges?
Ethics
Does the freight payment provider have a code of ethics? Does it tell you what’s good about its service rather than denigrating its competition? For many companies, outsourcing is the most economical way to properly audit and process freight invoices. Outsourcing freight bill audit and freight payment can recover 3% to 7% percent of your overall freight spend.
Financial security
Does the freight payment provider have audited financial statements, is it ISO certified and does it have an annual SOC II review, and at least a $1 Million Employee Dishonesty Bond?
Client service
How does the freight payment provider track client service issues to resolution? What types of key performance indicators does the provider maintain?
Carrier relations management
Does the provider have a committed staff committed maintaining outstanding carrier relations? Do they meet with carriers to communicate, resolve issues, and create efficiencies that benefit all parties? How do your carriers view provider?
Document imaging
Are all hard-copy bills scanned, with images made available on the provider’s website, and also on DVD or CD?
Web-based data access
The freight payment provider’s site should include standard and ad-hoc reports, drilldowns, mathematical calculations that result in new fields, client-driven report scheduling and onscreen and email report delivery.
Coding, editing, and validation
How comprehensive is the freight payment provider’s ability in this area? Can it derive cost centers from other data elements? Rules should be table-based and event-driven to ensure that updates are made quickly and easily.
Freight liability
How does the provider determine if the bill should be paid? Does it ensure supporting documentation is attached? Can they perform electronic validations to your bill of lading or purchase order file?
Web-based bill repair
Can freight bills that need client approval be repaired from the provider’s website? Can you easily view images of the freight bill and supporting documentation to resolve bills that are being questioned?
Parcel shipment capabilities
Does the provider have the ability to meet the integrated carrier’s requirements to obtain refunds for late delivery shipments that are manifested but not moved? Does it provide address correction and break down all miscellaneous charges?
Ethics
Does the freight payment provider have a code of ethics? Does it tell you what’s good about its service rather than denigrating its competition? For many companies, outsourcing is the most economical way to properly audit and process freight invoices. Outsourcing freight bill audit and freight payment can recover 3% to 7% percent of your overall freight spend.
A Freight Payment model typically consists of the client redirecting their carrier’s submission of freight bills and invoices to the Freight Payment provider. This can be done by mailing paper invoices, sending in PDF files via FTP to our site, e-mailing them into a custom e-mail address or using an electronic means of submission such as: flat files, CSV, Excel spreadsheet, EDIFACT, XML, ANSI X 12 EDI or a FB Master file.
By outsourcing to a Freight Payment service, the correctness of a freight bill will be assured, due to the audit for freight rates, freight discounts, misapplied accessorial charges, and duplication of payment among other things.
The Freight Payment firm then requires that you issue them a check, bank wire or EFT on a schedule for your freight payments.
This schedule is referred to as the weekly freight payment process or production run. The Freight Payment firm will then pay your freight bills to the carriers.
By outsourcing to a Freight Payment service, the correctness of a freight bill will be assured, due to the audit for freight rates, freight discounts, misapplied accessorial charges, and duplication of payment among other things.
The Freight Payment firm then requires that you issue them a check, bank wire or EFT on a schedule for your freight payments.
This schedule is referred to as the weekly freight payment process or production run. The Freight Payment firm will then pay your freight bills to the carriers.
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