The way that we buy and sell things has been revolutionised over the past decade or so. Although this statement is true for consumers, it’s undoubtedly true for businesses, too. If we take freight companies as an example, it’s clear how the emergence of both new markets and new technologies has impacted the industry, leading to faster deliveries and lower payments. In this blog post, we take a look at how the evolution of data is impacting freight payments.
Control The Whole Process, Not Just The Invoice
As anyone who works in logistics will tell you, working with freight invoices is incredibly complicated. As such, regrettably, mistakes do happen with billing and invoices. However, although Yodel (or any other freight business) may accidentally charge someone a fiver more than they intended, in the grand scheme of things, this is quite rare.
When assessing the overall picture, experts will tell you that more money can be saved by looking at the supply chain as a whole and controlling the whole administrative process. This provides both greater visibility for you and your business and greater control over the supply chain. It should also, if utilised correctly, eliminate billing errors.
In addition, you should look to have greater control over the money in the process. For example, you can also employ a freight factoring service to boost your cashflow as an alternate option. Here, you can consolidate your payments. This means that, rather than waiting 30 days or more for a freight invoice payment, you can get it turned around in 24 hours. This then gives you more money to spend and reinvest, solving cashflow problems that plight most small businesses.
Use Data To Your Advantage
Put simply, the level of data required for this simply wasn’t available a decade ago, but it’s something you should be taking advantage of now. We’ve recently seen an explosion in the amount of data available to businesses, thanks to the rise of the smartphone, broadband internet connections and improvements in UX at the heart of business models.
Nowadays, customers want to know more than they ever have before, and it’s your job to give them the information they require (and more). Now, a customer a freight business ships to wants to know:
- How long before their parcel is shipped
- How long it will take to arrive
- Where it is at all times
- How its condition can be guaranteed upon arrival
- Why they’ve paid the price they have for the shipment.
However, it’s not just a good idea to provide the customer all of this data to improve their UX. This data can be used by your business to lower your freight bills and provide greater value to your business and its customers; particularly if you marry it with a transportation management system.