Freight brokers and third-party logistics providers (3PLs) understand that attention to detail can be the difference between revenue growth and staying flat as a business. In a tough market where margins seem slimmer by the day, business leaders are feeling the proverbial belt-tightening in their daily operations.
Questions and concerns we’re hearing:
- How can I stay afloat without laying off ½ my staff?
- I feel like the tide is turning, but how much longer can we stay so lean? And, will we even be able to handle higher volumes when they come our way?
- Where is there margin left to squeeze?
One surprising area that brokers and 3PLs can focus on to jumpstart their growth is their freight audit and invoicing process.
When it comes to freight audit and invoicing, there’s a constant battle between speed and accuracy and many organizations believe the process they have in place is sufficient, but in all likelihood, the current process is costing your business and limiting your growth potential.
Below I list some of the most common methods freight professionals use to manage their freight audit and invoicing process, and the impact that each method has on the business.
Manual Audit and Invoicing
This is a method that many still use today with the belief that there is a meticulous review of every invoice. If there is a low volume total, this method may offer the most control and allow auditors to catch discrepancies and negotiate directly with carriers.
However, this approach is extremely time-consuming and requires more personnel to scale the business and as you add more people, the chance for errors also increases. These errors only lead to a loss in revenue and a decline in carrier satisfaction.
Outsourcing
Rather than manage the freight audit and invoicing process internally, many organizations choose to outsource the process. Initially, this may improve the process, but some drawbacks include a loss of control of the process, potential conflict of interest, a lack of transparency, and challenges of integrating with your internal systems.
An outsourcing approach may provide a short-term solution, but if long-term growth is the goal, outsourcing will not provide the right solution due to the cost and the limitations mentioned above.
A Hybrid Approach
Many companies believe that taking a hybrid approach of manual effort with technology is giving them the best of both worlds. In most of these cases, companies are using a Transportation Management System (TMS), which is not made for the freight audit and invoicing process, or some other technology that may be homegrown along with a manual intervention.
Like many of the other approaches I have mentioned, this too comes with several risks that need to be considered. The two biggest are the complexity of this process and the staff requirement that it takes to blend these two processes. And, as mentioned previously when discussing the manual aspect, any increase in growth and volume will certainly require more staff which only increases the cost of managing this process and raises the potential for errors.
Automation
If the goal is growth, then automating the freight audit and invoicing process is a must. By delivering an AI-powered automation solution, organizations can reduce the cost of the freight audit and invoicing process, improve their operational efficiency, get access to real-time data to make better business decisions and improve cash flow. In fact, Navix customers have reported a 30% increase in their cash flow by adopting automation. This is real growth!
Staying Ahead of the Curve
The freight industry continues to evolve with increased costs and competition. Freight brokers and 3PLs are looking at every possible way to gain an advantage and the quickest road to growth is automating with Navix.
Visit us today to learn how you can improve the growth of your business.