Digitalization of basic processes: verification of transport invoices
We speak of digitalization, understanding the approach of complex processes with the implementation of powerful software tools through expensive projects that could take long execution times, when most of the times we are putting the cart before the horses.
Throughout my years of experience, I have come across large companies that did not have a proper control and automation for a basic process as the management of transportation invoices.
We understand by administrative management of transport invoices the process of verification and payment of those invoices; I have usually come across paper invoices that are randomly and manually reviewed based on particular criteria and are always incomplete (not all services were reviewed, real / volumetric weight were not checked, applied rate was not the right one, “extra” items, etc.).
The inefficiency degree of a manual and incomplete process is, in addition to an unnecessary waste of time, a source of errors and enormous extra costs. Normally, billing errors are always “in favor” of the carrier and transportation invoices, depending on the company, they are usually a significant expense item.
Implementing a “digital” process will allow your company to match 100% of received invoices with the services that you have actually consumed (origin, destination, weight, etc.) and at the rate signed in contract with the carrier. This is a really simple “project” that does not require much time or a high investment, but the return is practically immediate.
The digital invoice is a document that any carrier on the market can share in a standardized format that can be easily integrated into a system to match the information of agreed rates (Excel tables) with the services consumed by our company (information that resides in the ERP or TMS of our company).
Creating an automatic process that loads these three data sources (digital invoice, current rates and services requested by the company) is an extremely simple project that can be implemented on Excel with advanced programming.
The benefit that provides to endorse 100% of the shipments by pressing a button to claim the carrier, represents a clear saving of administrative time and extra costs paid unnecessarily, savings that many large and small companies are missing today. With this tool only the exceptions would be reviewed in detail, based on errors found in weight, rate, etc. identified by the program.
If you are interested in ensuring that your company has an efficient transport invoice verification process, at Howdazz we can help you to save costs and free up your resources.
Author: Luis Perdiguero
Publication date: 10 June 2021