Reducing Expenses in the Logistics Industry
Transportation Logistics Company Improves Billing Service & Reduces Expenses by 35%.

Situation
A successful Transportation Logistics Company processes 1,500 invoices weekly, and has contracts with 45 shippers and 130 carriers. The company had outsourced their billing process for a number of years but was experiencing an increased level of service problems. Issues included slow turn-around times for imaging and data entry as well as missing documentation, which caused a negative chain of events with Shippers and Carriers. Shippers were unable to see the documents in a timely manner to approve them. Carriers were paid late. As a result, the Logistics Company spent a lot of time handling complaints, and some carriers wanted payment upon delivery. Many of their customer relationships were strained and threatening to look for services elsewhere.

In addition to service issues, their current outsourcing vendor offered limited capabilities with their process. One of the biggest problems was that when the Shipper was presented with a bill to pay, they had no option but to pay it. They were unable to view any of the supporting documents such as the individual carrier invoice or proof of delivery receipt. If there were mistakes on the bill – or even if they were billed in error – the Shipper had to approve payment & obtain a credit at a later date. This process diminished cash flow for the Shipper and petitioning for credits after the fact was burdensome.

Also, payment options did not include ACH, which was necessary to satisfy the needs of the Logistic Company’s growing and diverse client base.

As the Logistic Company’s executive team assessed their current situation, they decided that it was time to investigate other billing options.

Proven Experience
In reviewing the billing issue with a major Shipper, the Shipper recommended API Outsourcing, Inc. Knowing that API fulfilled the needs of a trusted associate and had proven billing expertise in the logistics industry, helped alleviate any anxiety in making the change. API offered additional business functionality that the Logistics Company’s Carriers and Shippers would find extremely valuable. Also, they offered specific process improvements which made the decision to work together with API even easier.

Enhanced Services and Savings
The Logistics Company is extremely pleased with the results. Converting to API reduced invoice and settlement costs by 35-40%. The company also reduced phone calls and disputes by 25% due to online access and dispute resolution automation. Working with API Outsourcing not only resolved the service issues, but the new solution provided additional functionality that lowered costs and created a more efficient and effective process.

Enhancements include:

• Carrier Portal – automates exception processing by automatically notifying carrier if support documents are missing. Carrier views documentation online through a client branded Web site and can also see the anticipated date they will get paid. This portal serves to ensure that Carriers receive timely and accurate payments. Effective payments can result in Shippers receiving as much as 3% savings on their freight rate.
• Shipper Portal – ability to review consolidated bills and see individual carrier invoice and support documents online. Disputes can be resolved quickly and invoices can be rejected or revised online if there are errors. Shippers receive a better understanding of their transportation costs which allows them to allocate those costs to individual product lines.
• Audit Portal – allows for automated exception processing and online dispute resolution.
• Audit Workflow – automation in audit process includes general ledger coding for Shipper.
• Payments – built-in duplicate payment protection. Expanded capabilities for payment processing including ACH and handling of international currencies.
• EDI Capability – EDI information is converted to an image for easier online viewing of all Carrier and Shipper transactions.

Positioned for Growth
The Logistics Company is currently positioning itself for expansion. Now that the billing outsourcing solution has been implemented, the company can focus on implementing their aggressive growth strategy. Not only are the current Shippers and Carriers satisfied, but the expanded capabilities provide them with a distinct competitive advantage. The Transportation Logistics Company realizes that this service differentiator is a critical component to their successful expansion.

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