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How to Tackle the Freight Invoice Management Obstacles

freight invoicing

How to Tackle the Freight Invoice Management Obstacles

A freight invoice is a detailed bill which includes information regarding the transportation of a company’s goods from one place to the other, along with the inclusion of the amount of charges, its weight, due dates, complete goods’ description, contact information, and names of both the receiver and the shipper, etc.

On the other hand, logistics is defined as the process of planning, implementing, and controlling the storage and movement of services and goods from the point of origin to the point of consumption within a supply chain, explains a top provider of Invoice Processing Services. The companies which deal with these processes become a part of the logistics industry and handle a few or all of the functions of supply chains as per the logistic requirements of the client.

Past Examples of Invoice Issues

-In recent times, an IT company was overbilled throughout 14 days by an amount of $935,578 owing to the incorrect weight applied by a parcel carrier.

-Auditing helped a national level entertainment retailer in saving around $35,000 from a wrong monthly invoice charge

-A worldwide renowned LED manufacturer had to pay $93,147 more due to incorrect billing currency, but the amount was recovered after the fault was discovered during the auditing process.

Top Freight Invoice Management Obstacles

Multiple Challenges

Managing invoices is extremely hard as a lot of challenges like reconciling contract terms with Bill Of Lading (BOL), invoices’ rating for correct rate selection, decisions about the acceptance of differences in charges, getting invoices resubmitted after making the carriers do corrections, etc. have to be dealt with extreme care. When these challenges are not addressed properly, they lead to errors, which further lead to overcharging, eventually adding to the overall Invoice Processing complexity.

Tedious Information Processing

The processing of information for the invoices is really tiring and tedious in nature. This is the reason employees who process the information for billing, weight, ledgers, data entry, and more commit multiple mistakes and make the final outcome inaccurate and hard to understand.

Bill Entry Issues

The very first concern which the logistics industry has to deal with during invoice management is the efficient functionality of the billing entry process which is defined below:

-Shortage of non-standardized processes and control due to operations which are not centralized for billing entry

-Multiple systems integration

-Due to missing BOL information, incomplete billable items are captured

-Multiple formats for BOL 

-Lost information regarding a customer or local-specific procedures for billing

Refund Management Issues

There are a lot of instances where the goods and services do not land safely at the doorstep of the receivers. In such cases, goods and services are returned back to the suppliers, which involves going through all the invoice processing steps again, which is extremely time-consuming for the owners of the logistics company.

Best Practices to Tackle Invoice Management Obstacles

Must-Include Invoice Listings

-Consignee and consignor names

-Shipment date

-Packages number

-Freight description

-Volume, weight, and measurement of freight

-Total outstanding charges

-Each carrier name engaging in transportation and movement route

-Shipment’s transfer point

-Issuer’s business address and remittance address

Freight Management Controls

It is important to incorporate internal controls which are powerful into the management structure of the freight. An authorization system, duty separations, and internal audits on a periodical basis are one of the most important tasks for managing risks like favoritism and fraud, which have the potential to bring down the overall profitability. 

The main objective is to make sure none of the employees have any chance for concealing and committing any illegal or unethical activity. For example, an employee who has been given the responsibility of getting the estimates should never be made the in charge of making the final freight invoice payment or selection.

Proficient Auditing System

According to a report by ReconLOgistics.com, wrong freight bills appear in about 5-6% of the entire invoices, which can raise the expenses of transportation to a great extent. With a proficient auditing system in place, along with a thorough recalculation and review can save you from overpaying due to inaccuracies in the freight bills. 

Apart from this, normal dealing procedures for lost shipment or damaged dealing, and timely claims reconciliation are an imperative part of a cost-saving management program for the freight.

Outsourcing Payment and Freight Audit

When it comes to finding the best solutions for streamlining the freight invoice management process, Outsource Invoice Processing remains a top favorite amongst the businesses due to its cost-cutting feature, along with the following benefits provided by it:

-Paper routing, filing, and handling elimination

-Centralized system for entire processing functions of the freight invoice

-Eliminating multiple systems and non-uniform processes

-Real-time insights into the invoices

-Latest technology use like artificial intelligence and automation

-Invoices’ long-term archival in the electronic form

-Carrier queries

-Increase cash flow to the maximum levels with timely invoice payments

-Receive correct and detailed accrual files and cost allocation straight into your system

-Gain visibility into operational metrics, invoice status, and payment information

Invoice Automation

Most of the industries have already incorporated the use of automation in a majority of their work processes, and have reaped great benefits in the following forms:

-Faster processing of invoices

-Elimination of costly human errors

-Invoice costs reduction by 80%

-Preventing payments duplicity and maximizing initial incentives for payments

-Enabling enhanced cash flow control and visibility

-Achieving 100% accuracy for invoice entry

Freight Software

Businesses who are trying to manage their freight invoices by themselves can ease their management workload with some of the top freight software mentioned below:

The Magaya Cargo System

This user-friendly software helps in eliminating duplicity of data entry, streamlining shipment workflows, generating Bill Of Lading, etc., along with a fully-integrated system for Invoice Accounting.

A1 Tracker

This software meets the unique business demands of the present scenario, make the working of the logistics systems smooth, and bring the required value to your business.

Freightos

The online platform for global trade management and freight booking, along with providing logistics owners with digital sales tools.

Excalibur WMS

This is a software which is fully integrated for warehouse management, accounting system, and third-party logistics (3PL) service billing.

CargoWise One

A central software system platform for worldwide providers giving logistics services.

Managing the freight invoices is definitely challenging owing to the various complexities in the form of inaccuracies and irregularities in the data and work processes, respectively. These complexities can be brought down greatly with the use of automation, outsourcing, audit systems, etc., eventually streamlining the process of freight invoice management at large, along with saving time and money at the same time.

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Gia Glad holds the position of Business Content Writer at Cogneesol – an outsourcing firm offering finance and accounting services along with other value-added services to the small and mid-sized businesses globally.

Automated Farming Solution Increases Stock Production by 20 Percent

Manual methods are becoming a thing of the past for poultry farmers implementing the CapTemp Farming Solution which provides farmers asset analytics that support impressive stock production increases.

CapTemp Farming Solution, a Portuguese company, provided one farmer with a quick, reliable solution after a recorded 20 percent loss on stock production due to lack of automated and analytics tools providing the insight he needed on farm equipment and livestock.

Once implemented, the farmer was successfully able to improve daily weight gains for improved animal growth, reduce stock mortality rate to zero, as well as reduce energy and feed costs due to better environmental conditions.

Through its partnership with market leaders in pig and poultry equipment, Equiporave Iberica, CapTemp provides farmers a sensor control system solution that collects and reports data on temperature, humidity, and gas parameters within the poultry house. Through this level of visibility, farmers are given the advantage and real-time controls.

Additionally, data logging and redundancy functions provide even more of an advantage through features such as scheduled machine usage. The automated solution also boasts features such as sensors networked to a central alarm system, operators that alert unusual conditions in real-time, and remote monitor operations.

For more information, visit: CapTemp

Source: EIN Presswire 

Digital Solutions take the Spotlight during Supply Chain Forum 2019

It’s no surprise that digital transformation served as the primary driver behind the message presented by leaders from Siemens Digital Logistics during the 2019 Supply Chain Forum in Frankenthal. The company’s first-ever joint conference forum delivered key insights on the importance of thorough implementation and understanding technology’s role in mitigating risk and generating success. More than 100 attendees from the commercial, manufacturing, and logistics industries participated in the conference.

“We need to increase the investments in implementing digital solutions. Digital transformation is not cheap, it doesn’t happen on its own, and it can’t be done half-heartedly,” warned Frauke Heistermann, a digital expert on the Board of the German Logistics Association (BVL). “Companies also need to develop and cultivate curiosity and enthusiasm for technology and all things digital among their top executives.”

Supply chain risks are inevitable and the key to success is through identifying and implementing a solution that makes them manageable, according to key takeaways highlighted during the forum. As the digitization of processes continues, industry leaders are encouraging companies to do away with paper and rely on software for seamless management. With these changes, scheduling and resource planning become streamlined and ultimately reduce economic damages.

Uwe Schumacher, Vice President of Business Development at Siemens Digital Logistics, reiterates this message by adding that the key to integrating planning, collaboration, and transparency in global supply chains is a reliable software solution.

“Visibility is the single most important aspect in the supply chain,” he adds.

Supply Chain Communications Streamlined with Riege + Chain.io Partnership

German digital logistics provider, Riege Software, confirmed its partnership with cloud-based platform Chain.io to support efforts increasing speed, accuracy, and visibility for supply chain stakeholders communicating
data between multiple internal and external systems.

“It is no question that continuous improvement to the technologies we use is an essential component in the future of international freight management,” says Thomas Jorgensen, President & CEO of Green Worldwide Shipping. “By increasing the operational efficiency of our technologies, we are able to free more time for our freight experts to do what they do best – service the client.”

Green Worldwide Shipping is one of Riege’s U.S. customers that adopted
Scope integration with Chain.io, ultimately leading to cross-platform capability enhancements. Following the implementation of Chain.io’s platform, company’s can anticipate a simplified approach to supply chain integrations including Avanced Shipping Notices, Inventory updates, IOT data streams, Shipment status updates, eCommerce orders and deliveries.

The collaboration aims to provide transparent visibility experiences for shippers as it offers more options, capabilities, and connectivity through an innovative platform.

“As logistics providers move towards digitization, they’re being asked to connect to more and more systems across many technology stacks,” said Brian Glick, Chain.io’s CEO. “We’re excited to provide Riege’s customers with a fast, flexible tool to help automate both shipper and agent connectivity.”

“Scope is predestined to connect applications and therefore also entities, it gives our customers more opportunities for collaboration, transparency and the facilities to meet their shippers requirements,” added
Tobias Riege, PhD and CEO of Riege Software. “We are delighted for Green Worldwide Shipping to have undertaken this journey with us.”

Automated Route Planning in the Works for Hupac Intermodal

Hupac Intermodal announced the upcoming implementation of Nexiot’s software solution to its in-house cargo management systems for supporting efforts managing delays, traffic, and route journeys.

“Nexiot is providing its customers with the highest level of transparency across the supply chain, which enables them to differentiate their offering, increase efficiencies and unlock additional revenue potential,” said Marcel Scheurer, Chief Commercial Officer at Nexiot. “Our distinctly collaborative integration approach and operational industry experience help our customers to extract the maximum value out of the technical solution.”

Nexiot has provided solutions for Hupac for the last two years. The
European intermodal network operator currently employs Nextiot’s self-sustaining sensors for real-time visibility from device-fitted wagons. This device provides information such as location, mileage, and border crossings every five minutes.

“We began working with Nexiot two years ago when we applied the smart sensors to 1,000 of our intermodal wagons,” said Aldo Puglisi, responsible for Digitalisation and Business Processes Reengineering at Hupac Intermodal. “When we began to analyse the data generated by the sensors in collaboration with Nexiot, we realized that it could be used to identify and predict weak spots in the supply chain, helping us make more informed planning decisions in an optimal way.”

Following the full integration of the digitization offered by Nexiot, Hupac will ultimately reap the benefits of optimization, information sharing with partners, time and money savings, as well as an overall reduction in risks and errors.

Employee Happiness Supported through Haltian and Tieto Partnership

Through a strategic approach with IoT, the Empathic Building service created by Nordic software and services company Tieto is now supported through the recently announced partnership with product development company Haltian. The aim of the Empathic Building is to provide employees an innovative workplace while improving the employee experience through a browser-based application. Through the partnership, Haltian will provide Tieto’s client facilities with sensor solutions.

”Tieto is a true pioneer in the digitalisation of workplaces, and we are extremely happy about having been chosen as a partner by such a major service company with international operations to smarten offices around the world. Our aim is to grow to be the world’s leading data collector in the Internet of Things in selected segments, and this newly-agreed contract is an excellent step forward in the most interesting growth market in the world,” added Pasi Leipälä, CEO of Haltian

This innovative application provides visibility in utilization rates, temperature, noise levels and the location of colleagues in facilities through sensors from real-time data.

“We chose Haltian as our partner because they are able to provide us with a comprehensive solution and because Haltian’s Thingsee service includes options for different use case scenarios. Haltian provides Tieto with the devices, the connections and the system administration as a pre-integrated solution, thus streamlining the setup of new customer applications. The reliable data collection system allows us to focus on developing new functionalities that serve end users. Empathic Building is a fast-developing business, and flexible partners such as Haltian facilitate international scaling of our business”, says Reetta Ruusunen, Head of Ecosystems and Partners for Tieto Empathic Building.

To learn more about the way Tieto’s Empathic Building is changing workplace environments, please visit: tieto.com

Automation Changing the Pace for Shipping Operations

Recently, Avantida announced Maersk’s implementation offering Container Triangulation for the Canadian and U.S. platforms, enabling communication between dispatchers and planners almost instantly. The process of automation will take place on Avantida’s platform, providing an opportunity for the company to penetrate the market regions.

“Both shipping lines and transporters continue to look for agile, cost-saving tools that can optimize their planning, and our platform has a proven track record of improving efficiency,” said Luc De Clerck, CEO, Avantida. “The platform has changed the way shipping lines in Europe are doing business, and after our launch in Mexico, it was a natural next step to introduce Avantida to the United States and Canada.”

Another example of how digitization is changing the pace of the market expansion is seen in the recent announcement from the digital freight forwarder, Twill. The company confirmed efforts to expand its 19-country network to the Nordic regions through operations in Denmark and Sweden, where they are being welcomed with open arms primarily because of the digital solutions platform providing customers increased visibility into each step of the process. More importantly, Twill’s online platform is applauded for the ability to co-create with its customer base. This unique feature is what sets the company apart, creating a hefty competitive advantage.

“The world is already becoming more and more digital around us, and with Twill we are challenging the fundamentals and changing perceptions in the freight forwarding industry,” says Ricco Poulsen, chief operating officer for Nordics and Eastern Europe at Damco said. “We want to be the market leader in digital solutions and our investment in this area will bring significant benefits to our small and medium customers, old and new. There are a number of ways in which Twill will continue to develop and support customers over the coming months, and we look forward to playing our part in that.”

Before understanding the impact that digitization solutions bring to the market, company leaders must first understand the core of digitization is rooted in customer demands. Without fully understanding what the customer’s needs and demands are, it can be a challenge selecting which tech solution will meet both customer and company needs, all while creating a competitive advantage and staying ahead of compliance.

Ocean Logistics 2019: Digitization Continues to Lead Trends

Ocean logistics in 2019 are demanding advanced, comprehensive and reliable information to cohesively support logistics needs, especially in an era when technology solutions are becoming the standard to successful operations. The continuation of digitization is a trend that industry players are not only prepared for this year but eagerly anticipating and implementing with each new solution that presents itself. Digitization continues to make its mark in the logistics and supply chain management sectors as a whole, but when it comes to ocean logistics specifically, the stakes are higher, and the solutions require careful consideration before a hasty implementation occurs.

Recently, Avantida announced Maersk’s implementation offering Container Triangulation for the Canadian and U.S. platforms, enabling communication between dispatchers and planners almost instantly. The automated process will take place on Avantida’s platform, providing an opportunity for the company to penetrate the market regions.

“Both shipping lines and transporters continue to look for agile, cost-saving tools that can optimize their planning, and our platform has a proven track record of improving efficiency,” said Luc De Clerck, CEO, Avantida. “The platform has changed the way shipping lines in Europe are doing business, and after our launch in Mexico, it was a natural next step to introduce Avantida to the United States and Canada.”

Leading companies, such as global shipping lines leader Maersk, continue to make strides to eliminate manual processes and replace them with seamless management systems that remove time-consuming and error-prone tasks, specifically with administration. Consider implementing strategies that support refreshed approaches to operations.

CMA CGM AND FREIGHTOS SIGN LANDMARK AGREEMENT ADVANCING SHIPPING DIGITIZATION

Worldwide shipping leader CMA CGM Group and the world’s online freight marketplace Freightos recently signed an ambitious pilot agreement whereby CMA CGM became the first ocean carrier listed on Freightos.

Online bookings, guaranteed pricing and secured capacity on CMA CGM China-U.S. trade lanes are available on the platform, with further extension to additional lanes planned in the near future. Rates for CMA CGM can be found free of charge on the Freightos website (freightos.com).

“This initiative demonstrates our commitment to customer centricity,” explains Mathieu Friedberg, senior vice president, Commercial Agencies Network, at CMA CGM Group, which is headquartered in Marseilles, France.

“This development represents a real change for the industry because for the first time, global shipping on key trade lanes functions like passenger travel or eCommerce, where customers can obtain guaranteed prices within seconds,” Friedberg continues. “We’ve been on a journey to provide our customers with innovative offerings to ensure them the best shipping experience. This partnership raises the bar for ourselves, and the industry, with this important step into the digital era, selling directly to shippers on Freightos.”

“This is a true win-win for the industry and a major step toward improving the customer experience,” says Zvi Schreiber, CEO and founder of Hong Kong-based Freightos. “With CMA CGM selling on Freightos, smaller shippers now have direct access to a major carrier with competitive pricing. Additionally, shippers of all sizes will have access to guaranteed prices and capacity. This aligns with our goal to help logistics providers drive more value for customers, enabling smoother global trade, and ensuring more reliable and affordable supply of goods to end consumers.”

Leveraging Licensed Spectrum and IEEE 802.16s for Mission Critical IoT Wireless Networks

Autonomous vehicles and trains are no longer figments of one’s imagination. Innovators such as Tesla have proven that we have the technology available today to build semi-automated vehicles. However, to make truly driverless cars, trucks, and trains a functioning reality on the roads and rails, it’s necessary to deploy communications networks and technologies that assure the requirements for mission critical operations can and will be met all the time, not just most of the time.

As we fast forward towards this new reality, it is important to understand that the U.S. Department of Transportation has started to build a loose framework of principals within its report, “Automated Vehicles 3.0: Preparing the Future of Transportation”. Further, the American Association of Railroads (AAR) and its members have established committees to create standards for automated train operations. Their efforts have prioritized operational safety leveraging a myriad of enabling technologies, software and infrastructure.

Another critical component of the analysis and evaluation is determining the communications infrastructure requirements that will enable these automated vehicles to operate safely, as well as how to responsibly introduce them to the roads and rails for coexistence with manually operated vehicles. This analysis brings to focus the need for control over these networks by the operators.  It also suggests the need for more private communications networks, optimized use of existing licensed radio frequency (RF) spectrum, and the possible need for allocation of more spectrum for licensed use and mission critical requirements.

While the conclusions from this analysis and evaluation aren’t complete, it is clear that companies with mission critical operations and applications, such as the transportation and rail industries, will need to have control over the design, operation and evolution of the communications networks. They are going to require data communications with the highest levels of security, reliability, and quality of service to support the rapidly evolving requirements of their operations. However, despite these requirements, the solution can’t be “at any cost”. The total cost of ownership for these networks must be realistic and not cost prohibitive. This strongly suggests the need for a standards-based communications technology that can be used across multiple industries with economies of scale in manufacturing and a vibrant ecosystem of developers and manufacturers.

Private Vs. Public Networks for Transportation

The transportation and rail industries use of private, licensed spectrum for mission critical control and signaling long predates the availability of the commercial wireless networks.  Even with the advent of the first cellular networks in the mid-1980s, industrial companies have maintained their critical wireless networks given that commercial wireless networks are designed for the consumer market and applications, and they lack the reliability, quality of service, security, and availability required by the rail and transportation industry.  Commercial wireless providers are unable to effectively prioritize traffic for mission critical applications or specific operations.  For example, on a commercial network, there is no way to prioritize a data signal being sent to prevent a train collision over an Instagram post or a video download from Netflix customer. These mission critical applications, control signals and critical data impacting safety and operation’s situational awareness need to be sent, received, and acknowledged with the highest level of reliability and without delay.

The Need for Standardized Protocols

While transportation and rail have had their own private networks using private licensed spectrum for decades, the networks and the spectrum allocated to them use very narrow portions of radio frequency with limited data rates.  This was adequate for voice and low throughput data communications that rail and transportation (and other industries) relied on in the past. However, as we move into an era of increased automation, with higher throughput and greater volume of devices and applications which include controls, increased security, and mission critical applications like positive train control (PTC), the transportation and rail operators need to be able to utilize existing private, licensed spectrum they have been allocated, but also need additional bandwidth and more capacity.  More and more broadband spectrum is being acquired by the commercial wireless service providers who purchase spectrum at auction for billions of dollars, and whose primary purpose is to provide services to millions and millions of consumers. They have a completely different business model than what is needed by mission critical industries.

One of the challenges that transportation and rail operators face, as do other mission critical industries, is that until recently there has not been a viable data communications standard and related technology to increase data capacity in narrower channel spectrum. Most of the  standards work on data communications has taken place for broadband spectrum.  To that end, Long Term Evolution (LTE) requires a minimum of 1.4 MHz channels and IEEE 802.16 requires a minimum of 1.25 MHz channels. This means mission critical entities were forced into proprietary solutions. While proprietary solutions are purpose built to meet specific needs (e.g., privately operated, licensed spectrum, secure, reliable and low latency), they present risks as well, namely the risk of a company or product line being discontinued, or all costs of new development and product evolution being passed on to those relatively few customers who use a specific version of the product or service. Even if the company purchasing the products has done their due diligence and taken measures to protect their interests (i.e., put the intellectual property into escrow in the event of a product or company discontinuation), there is no guarantee that another manufacturer would agree to make the equipment or provide the service, especially if the same economic risks persist.

For this reason, the Electric Power Research Institute (EPRI), the Utilities Technology Council (UTC), leading electric utility companies and telecom manufacturers came together to modify the IEEE 802.16 standard to operate in narrower channel sizes than 1.25 MHz, thereby opening up many new licensed frequency options with greater throughput. The new standard, 802.16s, which published in October of 2017, is frequency agnostic and allows for operation in channel sizes ranging from 100 kHz up to 1.25 MHz with reduced network overhead for maximum throughput in narrower channels.

This new protocol is being used throughout multiple mission critical industries, including electric utilities, water & wastewater treatment, oil & gas, government/military and most recently is being tested for use in rail. It is the first standards-based data communications technology designed specifically for mission critical industries. Leveraging a standard creates an eco-system of manufacturers and industrial companies within North America and globally.

This also means a standard technology for private networks can be implemented and as more and more mission critical companies implement this solution, it will continue to drive down the total cost of ownership for these private networks.  This should begin to open the door for a number of new technology innovations and applications that require higher bandwidths and data throughput to be realized sooner, and at lower costs.

The Path Ahead

It’s not enough that a technology exists and can be programmed or employed to perform tasks or automate operations.  Where safety is the highest priority, and security is directly linked to safety, the potential for technology and automation can only be realized if safety and security can be assured.

Leveraging standards-based technology over private, licensed spectrum to bring a wide array of technical innovations is a way to increase safety and security assurance.  Deploying networks using standard technology is not only a responsible way to keep costs down, but also to ensure interoperability and the ability to build eco-systems that will ensure new innovation and advancements in the future.

We are excited about the path ahead for the transportation and rail industries and believe this combination of approaches to deploying next generation networks will allow these industries to accelerate the benefits from automation and innovation – and do it in a safe and secure manner.

 

Credit: Ondas