Freight software is revolutionizing faster than ever before. With optimistic projections for freight market in the coming years, logistics and transportation company owners are also looking out for more innovative and efficient freight software to become competitive. But, is investing in a new technology is the only way to improve the efficiency of freight company? Maybe there are few small steps which can make a huge difference in freight company productivity. More often than not, we tend to overlook these small initiatives which can create a big difference in the overall productivity of freight software of the company without any huge investment.
Enabling your freight company with electronic invoicing is one of these initiatives which is generally overlooked in the lieu of sophisticated freight software solutions but is worth every penny of investment goes into it. One of the most interesting insight is that no matter how small this change seems to a freight software owner, it has got the potential of generating huge savings which are hard to ignore anymore in a competitive environment. The crucial freight software which is used to maintain the operations flow seamlessly heavily depend on the inputs gathered from the system. The freight management operations span from dispatch to tracking and all of these are interlinked to the extent that each of these can impact the other freight management software functions. Freight dispatch software, freight audit software, freight quote software and freight tracking software are the few examples where the software performs on the inputs delivered to them.
Manual invoicing has its own limitations and tends to slow down the operations as there are multiple levels of validations that are needed to ensure the quality. Electronic invoicing, which is a digital mode of storing information is far savvier as it can be easily shared between the multiple freight software. This also negates the many possibilities of redundancy and delayed responses. Let’s discuss few similar important benefits of getting your freight management system empowered with electronic invoicing.
It helps in cost saving
Paper invoicing is not only slow it also requires many resources which can be easily replaced by the digital medium at practically no cost. Right from the printing, paper and mailing cost the expenditure incurred in paper invoicing is significant in handling the invoices. While in the electronic invoicing, no added expense is incurred as the process is completely digital, it is also easy to communicate these invoices without any dependence on a third party mailing service. You can directly and instantly send the invoices to the customers without any fear of getting them lost in the process. On an average, freight software companies save around 59% of the invoicing cost per invoice with electronic invoicing.
Contributes in automation
As we have discussed in the last point, communicating paper invoices can be a hassle as they are perishable documents which need clerical assistance to handle. It adds up the possibilities of human error in communication of invoices for the orders which can hamper the dependent processes of freight management. Invoice generation and distribution is an important step for freight management software as it initiates many crucial processes in the system. With invoices detailing the crucial details of customers and freight, it is difficult to ensure 100% success for the operations if these invoices are processed with an error. However, digitally generated invoices negate these possibilities as they are conveyed to both the parties involved are well connected for verifications. It also opens up the channels for a quick communication in case of any confusion or doubt about the details mentioned in the invoices. With quick redressal of these small issues, the automation becomes easier and faster for the freight software.
Feasible for auditability
Freight auditing software reduces the work for the freight managers by a huge margin by taking care of the frequent and complex transactions happens on a daily basis. Again with a digitized process, it is far easier for the managers to perform a quick audit for work orders and invoices generated. With intuitive and seamless user experience, it also helps in quickly analyzing the KPIs to assess current statistics about freight orders as well as carriers. This ensures that the freight company owners are aware of the current liabilities and assets of their company and strategize accordingly.
Flexibility for editing orders
It is difficult to incorporate any change in the work orders with paper invoicing as the generation of invoices is a little more cumbersome and takes time. In the dynamic freight industry, this can be a deterrent in quickly taking decisions and producing the required documents (which mostly includes invoices) supporting the execution of that decision. Asset allocation, spot fixing and carrier availability and customer requirements are the volatile issues which generally ends up in editing or generation of the new work order. This also means that the changes are also needed to be reflected in the invoices. Editing, changing or combining more than one invoices for single order are much easier in electronic invoicing. This also makes it easier to keep the system updated in real time with the latest status of the orders.
Helps in regulatory compliance
With the upcoming ELD mandate and existing tax laws, it is becoming necessary that the freight companies become capable of digitally attesting the key documentation and receipts for the permissions given. This also helps the drivers to have access to all the necessary paperwork without literally carrying the “Paperwork”. With the help of digital copies of invoices, tax receipts and other documents which can be accessed through the internal system, the carriers can be complete the trips with a greater control. It also helps the authorities to complete the validation and checking process as fast as possible.
Improves the cash flow
A digitally generated invoice can help in tracking the cash flow at many levels. Since the generation and dispatch of invoices don’t add up to any clerk charges to the freight company, more consistent follow-ups can be planned. It also eradicates the necessity of manually tracking the payments and acknowledgments as the digitally created invoices can be promptly communicated and automated within the freight software settings. The process becomes much more independent of human intervention and streamlined and results in clear statistics about the current financial status of the freight company.
E-invoicing is one of the primary steps which starts the digital transformation of any freight company. It is often overlooked in the lieu of more sophisticated freight software which comes with more advanced features. But we miss the importance of providing the required inputs for these digitally advanced freight software in the most comprehensible format. Dreamorbit is trying to eradicate similar loopholes in the freight management process of the logistics and transportation companies around the world. If you are also looking for a detailed analysis and some key suggestions to improve the freight software solutions used by your organization, you can get in touch with a quick discussion anytime.
DreamOrbit is a Logistics and Supply Chain Technology Development company. We have been creating meaningful and reliable software products for the industry which is “Always on the go” for the past half decade. We are highly motivated team aimed at innovation. Our philosophy is to “keep challenging the potential within”. With the support of our happy customers and dedicated team, we strive to provide best possible solutions to industry problems. Visit our website to know more about DreamOrbit.