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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.

release

5 Tips for Launching New App Features

Plan the release. 

While you’re still in the planning phase for a new feature, it’s a good idea to also think about how you will release it. This is something often done within the design process.

Things you should incorporate into this include: 

-Who will see this feature first? (Are there internal or external beta groups?)

-What is success for this feature?

-Who will see the feature once it’s in a steady state? (Is this for VIP customers or everyone?)

-Is there important timing tied to this release, such as an event or special time of the calendar year?

Tools that will help you with this include product delivery and tracking tools

Build awareness.

Awareness around a release is important for both internal and external groups. Within your organization, do teams have the support they need to be successful? Think about what your sales, marketing, customer success, or any other team will need in terms of understanding the feature being released, and how to answer any questions they might face. Externally, awareness should be tied back to how you will measure success. 

Tools that will help you accomplish this include go-to-market plans, centralized information repositories, and any other tools that will help your teams (and customers!) stay connected, informed, and collaborative. 

Measure your release.

After the release has happened, how will you know if it was successful? Because you already thought about success metrics in the planning stage, you should be ready to measure whether or not it was successful. 

Tools that will help with this include those that surface sales and ops metrics. Also, it’s important to consider these together—look at performance and monitoring metrics, support requests by volume, and qualitative feedback from customers and prospects.

Celebrate and recognize.

Take time to celebrate your wins. Shipping software is like a muscle, the more frequently you do it, the easier it is to execute. If you ship less frequently, the process begins to atrophy and the action becomes more difficult. Celebration (even for small wins) provides motivation to continue practicing the act of shipping, and results in more stable services and products.

Reflect and iterate. 

Software is never done, and neither is a process for software delivery. After the release has occurred and you’ve paused to enjoy the moment, now it’s time to reflect back on what went well and what didn’t. Reflect on both process and product.

Tie process back to culture—consider the tools that you use for process, what enabled you to do more and what was a hindrance? Use this feedback and apply what you learned from measuring success in the planning phase for the next release. Learn how you can adjust and improve upon what you shipped.

 

Adam Zimman, VP of Product and Platform, LaunchDarkly

Adam has over 20 years of experience working in a variety of roles from software engineering through to technical sales. He has worked in both enterprise and consumer companies such as VMware, EMC and GitHub. Adam is driven by a passion for inclusive leadership and solving problems with technology. One additional objective is to be a part of a diverse and equitable company. Not simply an organization that accepts diversity, but one that actively pursues a more diverse and inclusive team as an imperative for building better products and services. Adam is also an Advisor for a number of startups and nonprofits. His perspective on life has been shaped by a background in physics and visual art, an ongoing adventure as a husband and father and a childhood career as a fire juggler.

6 Ways to Improve Efficiency, Speed, and Accuracy in Your Warehouse

Modern warehouses are already much faster and more efficient than those 20, even ten years ago. But you’re still feeling the budget crunch every quarter. And, if you’re like us, you know that there are always things we can do to make a warehouse a little better.

So, we crunched the numbers, talked to experts, and meditated in the back of the warehouse to come up with these six methods designed to improve your warehouse efficiency, speed, accuracy, and how much we like working in a warehouse.

Improve Your Operational Software

Your first step in improving your warehouse operations is having the right tools in place to measure, track, and understand what you’ve got. A modern warehouse management system (WMS) is your safest bet to start establishing baselines of your efficiency, waste, how quickly you fill orders, and how accurate everything you do is.

We’ve all heard it a thousand times, but it remains true: you can’t improve something you don’t measure. Choose and implement a capable WMS to gain a better understanding and give your team plenty of ways to use their time and your inventory better.

Enhance Your Metrics Choices

Metrics, especially key performance indicators (KPIs), build on that introduction of a smart WMS. They help you tell the story of your business and how it can do better — and sometimes communicating KPIs is just as important as choosing the right ones.

Review the metrics you track and how you define KPIs. Do they measure productivity? Can they respond to changes to your baseline? Do they match up with current targets and accurately track as performance changes?

Don’t get overly complicated.

You want KPIs that are easy to understand and measure. Glancing at your system and dashboards with these metrics should give you an idea of the health of your business. You and your warehouse team can understand five metrics much better than 20. So, find what easily tells the most important story.

Reorganize Your Inventory Locations

Once you know what to track and can start tracking it, it’s time to review your standard day’s orders and the routes people take to pick them. Look for high-volume products and see if they’re in a good or bad location.

Put your most popular products near they critical points in your warehouse that can speed up picking and packing efforts. Usually, this includes aisle ends and exit or transition areas. However, you might also have enough volume to give them their own space that’s closest to your packing areas, with a set team of pickers grabbing only these while others grab the secondary items to complete each order.

You can speed this up further with a WMS that support voice picking and wave or batch pick and pack methods. They’re faster, more accurate, and improve your efficiency for filling orders.

Try Custom Kitting

When you redo your inventory locations and start reviewing route changes, you’re collecting a lot of data along the way. Use it.

Productivity can see significant gains when you implement custom kitting in your warehouse. Kitting can occur with the packages you sell or how you manage your warehouse, both increasing efficiency by reducing pick points. Selling kits means you can control inventory better and generate higher-value orders more often.

However, you can kit within the warehouse simply by grouping products that are typically bought together. Some companies even bag select items together to give pickers an option to grab one thing instead of many. It can help you control your space and keep inventory counts more accurate, giving you a nice boost.

Give Receiving Its Due

The warehouse mantra is often about getting orders out the door as quickly and accurately as possible. Unfortunately, that leads to bottlenecks and procrastination in the receiving department. The faster and more efficient you become, the quicker you need to get your inventory ready for use.

Make every aspect of receiving, from putting away inventory to breaking down boxes and taking out the trash, important. It should be habit, and your systems should reinforce it. The better you do this, the more accurate and reliable your data, making all these other steps more efficient.

Besides, do you really want a bad inventory count because an empty box listed as full?

Talk to Your Team

And the final way we’ll think about running a better warehouse is by asking you to stop thinking about it. All of the steps above require data and activities from your warehouse team, IT, leadership, and more. Every group interacts with each change in a variety of ways, giving them varied perspectives.

Don’t let all that experience go to waste.

Talk to your team in the warehouse, in IT and sales, and leadership. Discuss what’s working, what isn’t, and their suggestions to change things regularly. You’ll get a two-prong benefit:

-People interacting with the systems and changes have excellent vantage points to find breaking points or see additional changes that can boost your performance.

-It helps your teams feel heard, which makes them happier to come into work and more likely to implement the changes you make.

Your company pays a lot to have different experts in and around the warehouse. They’re the most significant resource for maximizing your business. And, we all like feeling respected at work.