The never-ending “paper shuffle” of billing management can be one of the most time-consuming aspects for all businesses. Finding the time to tackle the issue can be daunting. Yet it potentially brings great rewards, because when you find the most efficient and effective billing process, you can quickly identify small errors that add up to large numbers.
The fact is, processing and invoicing transportation-related expenses is complicated. Yet the right software — backed by a team of professionals — can help you implement a series of checks and balances that ensure the accuracy of all invoices and the proper categorization of all charges.
Understand your total transportation spend
As part of its services, Penske Logistics can oversee customer billing and invoicing processes for transportation-related expenses across all of its product lines. Using its powerful ClearChain® Technology Suite, Penske processes about 900,000 invoices a year for customers, which equates to roughly $800 million to $900 million in transactions.
ClearChain allows Penske to simplify and streamline the billing process with pinpoint accuracy. What’s more, ClearChain allows Penske’s customers to centralize their data and truly understand their total transportation spend.
Connect every invoice to the contracted rate
To manage the billing process, Penske developed a payment tracking app within ClearChain. Through this self-invoicing business model, Penske presents carriers with its rated amounts and charges based on a specific transaction. Because ClearChain also integrates Penske's load planning services, the system confirms invoices match the transaction’s contracted rate.
Get the full audit trail for every transaction
ClearChain increases control and prevents customers from paying for inaccurate transactions. That’s because it takes each operations activity Penske is authorized to handle and ties it to the financial transaction. As a result, ClearChain can tell quickly if something doesn’t match.
“If a shipper is just getting invoices and paying them, discrepancies can go undiscovered. ClearChain gives you timely detail that allows you to pinpoint the root cause and solve the problem.”
—Brian Fidler, vice president of financial administration at Penske Logistics.
Previously, a shipper may have paid a carrier solely because the carrier picked up and delivered a load. However, the amount could have been incorrect, or that transaction could have been billed erroneously to a supplier and not a customer.
With ClearChain, customers can review each individual transaction and approve the invoice. They also can dispute a charge or request a different rate or accessorial charge if necessary. The system provides a full audit trail of transactional detail along with information on why charges may or may not have been approved.
Properly allocate freight costs
The speed and accuracy of ClearChain helps Penske customers properly allocate freight costs to the right financial period. It also gives them visibility into freight costs much sooner and allows them to make pricing adjustments as needed.
Help your partners get paid faster
ClearChain also benefits carrier partners. They receive full visibility into their transactions with Penske, can see when they’re getting paid, and can get paid faster. This improves the overall relationship between Penske and its carrier partners.
ClearChain technology suite ensures shippers and the carriers serving them can rest assured about the accuracy of their records. Penske Logistics employees tackle this responsibility head-on so shippers can avoid the “paper shuffle” — billing and rebilling that can become part of the invoicing process.
Improper and inefficient billing processes cost your organization time and money. With the ClearChain technology suite, you can find the root causes of your challenges, take back your time and take some weight off your shoulders.