Streamlining Broker Payments: Insights from Recent Epay Manager Webinar

Last Thursday, Epay Manager hosted a LinkedIn webinar discussing common challenges in the brokerage payment landscape and how their platform aims to address these issues. The presenters were Clayton Griffin, Executive Vice President and Chief Strategy Officer at OTR Solutions, and Jason Kirkpatrick, Director of Operations for Epay Manager.

Interestingly, OTR Solutions has been a long-time client of Epay Manager for over a decade, offering a unique perspective on the platform's capabilities from both a user and provider standpoint. This dual experience adds credibility to their insights on the challenges faced by brokers and the potential solutions offered by Epay Manager.

There were several data points worth sharing about the current state of carrier payments and back-office operations for brokers and the approach to these subjects by Epay and its competitors.

Common Broker Payment Headaches

Before diving into solutions, let's review some prevalent problems brokers face:

1. Invoice Processing Inefficiency

Many brokers struggle with manual, email-based invoice processing. This leads to:

• Wasted time sifting through emails
• Duplicate submissions
• Misfiled or lost invoices
• Difficulty tracking invoice status

2. Payment Accuracy Issues

Inaccurate payments are a major pain point. Some larger brokers report:

• 30%+ short-paid invoices
• Significant time spent reconciling discrepancies
• Strained carrier relationships due to payment errors

3. Cash Flow Constraints

Brokers often face cash flow challenges due to:

• Holding funds for days while payments "clear"
• Inflexible funding options
• Difficulty offering competitive quick pay programs

4. Fraud Vulnerability 

• With open email inboxes for invoicing, brokers are exposed to:
• Phishing scams
• Fraudulent payment requests
• Data breaches

5. Inefficient AP/AR Processes

Many brokers have separate AP and AR teams, resulting in:

• Duplicative work
• Longer processing times
• Higher operating costs

6. Limited Carrier/Factor Visibility

Lack of transparency leads to:

• Increased status update calls/emails
• Frustrated carriers and factors
• More time spent on support vs. core business

How Epay Manager Approaches These Challenges

The webinar outlined several ways Epay Manager aims to tackle these industry pain points:

1. Proactive Invoicing Workflow

Instead of reacting to emailed invoices, Epay creates invoices proactively based on TMS data. Epay reports this approach leads to:

• 300-500% increase in invoice processing per team member
• 98% reduction in billing inaccuracies
• Elimination of duplicate submissions and manual document matching

By starting with structured TMS data, the platform aims to streamline the entire invoicing process for both brokers and carriers.

2. Interactive Carrier/Factor Portal

Epay provides an online portal for carriers and factors to access real-time load and payment information. Benefits include:

• Reduced status update calls/emails
• Faster dispute resolution
• Higher transparency for all parties

The presenters noted that about 95% of carriers already have Epay accounts, potentially easing adoption for new broker clients.

3. AI-Powered Document Audit

Epay employs AI to go beyond basic document indexing:

• Automatically flags potential issues or missing information
• Focuses human review on exceptions rather than every document
• Claims to reduce AP audit time by 75%

This automation aims to speed up processing while maintaining accuracy.

4. Unified AP/AR Workflow

Unlike platforms focused solely on carrier payments, Epay integrates both AP and AR processes:

• Conection of AP and AR workflows
• Automated prep of shipper invoices based on carrier docs
• Potential to cut back-office operating costs by 50%

5. Same-Day Fund Clearance

Epay doesn't hold funds for multiple days during "clearing":

• Brokers retain control of funds longer
• Estimated $100k annual interest savings for a $100M broker
• No hidden fees from float on held funds

6. Flexible Funding Options

The platform offers various funding arrangements:

• No funding required to use the platform
• Options for quick pay, extended terms, or partial funding
• Brokers keep 100% of quick pay fees when using their own funds

7. Fraud Prevention

By moving away from email-based invoicing, Epay aims to reduce fraud exposure:

• Controlled access to transactions
• Required registration for payees
• Reduced risk of phishing or fraudulent payment requests

Adoption and Results

The webinar presenters shared some interesting statistics on Epay adoption and performance. 

• 12% carrier adoption of quick pay programs (vs. 2-5% industry average)
• 200,000+ registered carriers and factors familiar with the platform
• Implementation in as little as two weeks for TMS-integrated brokers

Given OTR’s long-standing relationship with Epay Manager, Griffin was able to provide firsthand accounts of the platform's impact. Griffin’s experience a user of the system under OTR Solutions before becoming a provider adds weight to the statistics and benefits presented.

Potential Drawbacks

While the webinar focused on Epay's advantages, they did address one potential downside:

• Required registration for carriers/factors (though they argue this aids in fraud prevention)

Griffin and Kirkpatrick noted that the registration process takes only a few minutes and that most carriers are likely already registered due to Epay's long-standing presence in the industry.

Industry Implications

If Epay's claims hold true, the platform could significantly impact how brokers manage their back-office operations:

Improved Cash Flow: Faster processing and same-day clearance could free up working capital for brokers.

Better Carrier Relations: Higher transparency and fewer payment errors could lead to stronger carrier partnerships.

Increased Automation: AI-powered audits might pave the way for more "touchless" payment processing.

Unified Back-Office Systems: The trend toward integrated AP/AR workflows could reshape how brokers structure their teams.

The Epay Manager webinar highlighted several pain points in the current broker payment landscape and presented their platform as a comprehensive solution. While the presentation naturally focused on Epay's strengths, the concepts discussed align with broader industry trends toward automation, transparency, and integrated workflows.

As with any technology solution, brokers should carefully evaluate their specific needs and how platforms like Epay align with their operations. It's worth noting that competitor solutions may offer similar features, and a thorough comparison would be valuable for brokers considering a switch.

Regardless of the specific platform chosen, it's clear that the future of broker payments is moving away from email-based processes toward more structured, automated systems. Brokers who adapt to these changes may find themselves better positioned to handle growth, manage cash flow, and maintain strong carrier relationships in an increasingly competitive market.