The logistics and supply chain industry has been deeply impacted and transformed over the past year due to the pandemic and surge in global consumer demand. To keep abreast of the changing environment and ensure improved efficiencies, brokers nationwide are recognizing the advantages of switching to an end-to-end digital payment process. Below we discuss three main takeaways from ditching a paper-based payment system and switching to digital payments.
In a traditionally fast-moving and constantly changing logistics industry, the global pandemic outbreak at the beginning of 2020 created an immediate need to adapt a contactless solution to keep the goods on the distribution docks moving while keeping all personnel safe. For many 3PLs and brokers, the response was swift, and many switched to a digital solution to address the initial necessity of keeping drivers safe.
What brokers didn’t expect from ditching cash and checks and switching to digital payments was that several other benefits trailed the transition to thoroughly modernize the process end-to-end. Here are the three main takeaways that brokers experienced by switching to digital payments.
1. Optimized Payment and Reconciliation Process
Implementing a digital payments solution eliminates the need for paper-based payment types like cash and checks making the process much faster from start to finish. No more money or check codes to be confirmed, no more calls at odd hours of the night, and drivers no longer have to wait around to get the payment processed. The transactions are not only safe and fast but also secure in the sense that they all keep a digital trail, and receipts are automatically generated for the driver, broker, and shipper so that any reconciliation is swift and it helps ensure reimbursement every time.
2. Carriers Paid Quickly
Cash flow is incredibly important for carriers given they incur the costs before receiving payment. Freight brokers are starting to offer faster payment terms – well inside the traditional 25-30 days from the invoice date. Relay customer Coyote Logistics recognizes the importance of fast payment terms and offers QuickPay, allowing carriers to be paid within a 48 hours window.
The time saved on reconciling payments and processing reimbursements quickly provides a better experience for your carrier customers and goes along way in listening to what your clients want and need. A fast transaction also means optimized efficiency at the distribution center and the opportunity to move even more goods, which nurtures mutual business loyalty.
3. Improved Carrier Relations
With the current driver shortage and supply chain demands, customer loyalty is so important. Building a long-term relationship with your carrier companies is not only necessary but a competitive advantage. Putting your carrier customers at the center of every decision and finding ways to better improve their customer journey can lead to better processes and outcomes for all parties. This entails investment in technologies, people and processes.
If you want to learn more about how Relay Payments can help your brokerage improve your payment process, please schedule a call with a team member to learn more.
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