The Price Tag of Paperwork Mishaps in Freight Brokerage

In freight brokerage, time is money. A recent poll conducted by FreightCaviar revealed a significant hurdle in the path of operational fluidity: the challenge of processing carrier invoices marred by incorrect or invalid paperwork. Desks swamped with invoices—some correct, some not so much. What’s the real impact of dealing with paperwork issues?

The Root of the Problem

Human error is the main culprit. The manual process of matching and managing documents can be tedious, which can lead to potential inaccuracies and put a heavier burden on back-office staff. 

• Mismatched Details: A wrong PO number,  incorrect billing address, or PODs may seem minor but can lead to major delays and extra costs. 
• Duplicated Shipments: Imagine paying twice for the same shipment because of a duplicated invoice – frustrating and costly. 
• Inaccurate Charges: the range of billing inaccuracies is vast. Each error requires time and effort to identify and correct, such as adding accessorials. 

The Impact of Invoicing Errors

These mistakes are bad for business, and depending on the carrier, they could cost anywhere from $11 to $77 per mistake. The domino effect can tightly hinder operations in businesses of all sizes. Even logistics giant Maersk reported that 12% of its container industry invoices contain errors. This discrepancy can reach up to an alarming 25% for other companies. 

• Financial Setbacks: Every error is a financial drain. Rectifying mistakes, especially after payments have been made, can be a nightmare that often involves reclaiming overpaid amounts – a task easier said than done. 
• Strained Relationships: Trust is the cornerstone of any broker-carrier relationship. Persistent invoicing errors can erode trust, strain relationships, and lead to loss of business. Carriers and shippers seek reliability and accuracy in their dealings.
• Compliance Risks: Accurate paperwork is a matter of legal compliance. Errors can lead to fines and penalties, further amplifying the cost implications. 
• A Barrier to Scaling: Invoicing errors represent an obstacle for freight brokers eyeing growth. The administrative burden of handling these inaccuracies can limit a broker’s ability to take on new clients or expand into new markets. 

The Digital Lifesaver: Embracing Tech

Gone are the days of shuffling through mountains of paper to find that one invoice with a typo. Implementing a digital system can be a game-changer. This tech makes it a breeze to create, manage, and send invoices to all parties involved. 

With the right tech, incorrect billing is virtually eliminated. 

A solution like Audit Proof Invoicing from Epay Manager Powered by OTR Solutions can lead to a 99% reduction in inaccurate billing and settlement. It's a platform that helps solve the paperwork puzzle, leading to a smoother, faster, and more reliable invoicing process. 

Why It Matters

Adopting the right solution is essential in an era where digital transformation dictates the pace of progress in the freight industry. Here’s what it means for your business:

• Reduced Billing Time and Costs: Less time spent on billing means more time for business development.
• Increased Operational Focus:  With administrative tasks streamlined, your team can focus on what they do best—growing the business.

Epay’s Audit Proof Invoicing can tackle 3-5x more invoices per team member and provide a 40-50% decrease in cost per load. 

That’s a lot of time and money that goes back into your business. Paperwork doesn’t have to be the hidden villain; you can turn it into your secret weapon for growth with the right tools.