An Insight to The Freight Payment Process and It’s Need to Outsource
Freight payment is often known as freight audit and payment within the logistics industry. Freight bill payment services include the processing and managing of the bulk of freight invoices that would ease the logistic operations.
Compiling the invoices and processing them from time-to-time is a complicated and challenging activity faced by logistic organizations. Also, the handling of these invoices or freight bills unprofessionally can lead to multiple errors, poor internal processes, and late payments. In such instances, to overcome the hazards, outsourcing the freight bill payment services is regarded to be a wise decision.
Generally, the freight bill processing includes aspects such as invoice receipt and verification, invoice auditing, carrier payments, and detailed reporting.
Let’s take a look at how the freight payment works?
Generally, the outsourcing companies implement the freight bill auditing process in various ways. But we are listing a common and frequently executed method over here.
Invoice Receipt Handling – Often, the invoices received by the outsourcing companies are in a bulk quantity. It undergoes the typical methods such as manual invoice processing and sending it through an email whereas the electronic-based invoices are sent through EDI (electronic data interchange).
Validating the Invoices – Once the invoice is received, the logistic BPO companies will validate and audit every single invoice. They will ensure that the invoices/receipts aren’t processed previously and will guarantee to ease the documentation process. It also includes the validation of the bill of lading (BOL) against the internal data set of the shippers.
Data Capture – Capturing the crucial data from the invoices such as the type, receipt number, date, amount, etc. is a vital stage. The data is collected, stored in a specific format, and contributes to the creation of a reporting database. The suppliers utilize these data to analyze and manage the supply chain process.
Quality Check – At times, the manual logistic data entry and freight payment processing include various errors such as incorrect billing (sometimes, the errors might also occur by the carriers) or missing data. But the outsourcing companies have a quality check team that is well-proficient in managing and resolving these errors.
Customized Reports – The logistic BPO companies will create customized and periodic reports with the integration of details such as accurate information, etc. These comprehensive freight bill audit reports will help you to formulate a wise decision-making process.
Now, coming to the next session, why should you outsource the freight payment process?
- Outsourcing the freight payment process is a cost-effective solution. It will eliminate the need to spend on receipt of invoices, validation, auditing, allocating resources, reporting, customer services, and so on.
- With a professional team of assistants at the outsourcing company, you can enhance the efficiency in the invoice/freight payment processing.
- The logistic BPO outsourcing companies are proficient in offering meaningful business intelligence.
- The outsourcing firms have the ability to make the best use of valuable resources and sophisticated technologies and optimize business growth.
- They have equipped the best data security measures to safeguard your freight bill data and information.
Outsourcing the logistic BPO services such as logistic data entry, freight processing, auditing, etc. isn’t an old trend. Choosing and collaborating with the right logistic BPO company can enhance your decision-making process and will help you to focus on the core activities.
NexGen Logistics BPO is the globally leading service provider of back-office and administration services including freight bill payment and auditing needs. Our well-specialized team has the potential to deal with all sorts of freight bill audit process as they have a proficiency in managing the documentation of all transportation modes (rail, ocean, air, and road).
If you are struggling to meet the end-to-end freight bill auditing services, contact us at [email protected]