Shipper-defined aging. ⢠Confirms ... SaaS Technology. Supply Chain ... per the shipper-defined rules and cannot be pa
TECHNOLOGIES
WebSettle® confirms total shipment charges during execution and before settlement:
MANAGE FREIGHT PAYMENT INTERNALLY WITH WebSettle®.
• Features traditional Manual-Match and invoice-less Auto-Match • Eliminates the need for an outside freight payment service • Shipper-defined aging • Confirms shipper agreement with carrier rate prior to tender • Routing guide deviation must be approved by shipper • Multiple payment methodologies
Challenge Manual freight bill audit and payment is a costly and error-prone process – original errors can cost a company 8-10% of its annual freight bill. An audit can potentially recover 3-6% of the freight bill, but costs transaction fees and 25-50% of the money recovered. No amount of audit will discover all errors, and contracting mistakes prevent recovery. Since deregulation in 1980, the best practice method to handle freight bill audit and payment has been universally accepted – that of “self-billing.” This involves the shipper pre-computing an audit quality rate and conveying it with the tender to the carrier and then paying the carrier upon delivery confirmation. This process pays the carriers the correct amount the first time and pays for each shipment only once. Unfortunately, many companies do not have either the rate database or the system constructs that allow them to implement self-billing. Solution WebSettle® is the freight payment component of LeanTMS® that reduces administrative expenses by adopting self-billing as a primary way-of-working. Since LeanTMS produces audit quality rates in the planning and execution phase, payment is automatic upon closing the load. WebSettle will also perform freight bill matching and duplicate payment detection for carriers who must submit traditional freight bills. Paid bills are added immediately to payment history for duplicate detection. WebSettle also accurately allocates freight costs to shipments and orders.
LeanLogistics 1351 S. Waverly Road Holland, MI 49423 www.leanlogistics.com P 866.584.7280 A Brambles Company
WebSettle allows the shipper to manage the freight payment process internally, providing greater control over cash flow and mitigating the financial liabilities inherent within a third party freight payment company. WebSettle supports both a traditional Manual-Match process and an Auto-Match “invoice-less process,” removing the invoice altogether.
WebSettle®
Manual-Match The Manual-Match process supports the traditional method of matching a shipper’s payable rate for a load against the carrier’s invoice rate. LeanTMS® simplifies this process in multiple ways. The first is allowing carriers to send invoices electronically. A carrier integrated with LeanLogistics can send invoices in via EDI 210, eliminating the need to print and mail a paper copy. Shippers can also manually key in invoices if needed. Manual matching is also simplified through automatic invoice validation and processing per shipper-defined rules. The rules define whether or not invoices meet the requirements to be processed and whether they are approved for payment or marked as requiring review.
Auto-Match The foundation of the Auto-Match process is the shipper’s ability to enter carriers’ contract rates into LeanTMS® and provide carriers permission to view the rates on their tendered loads and request rate changes if necessary. Since shippers can easily tender loads to carriers using contract rates and carriers can submit rate change requests, the payable rate is audit-quality and visible to both parties from the moment of tender through completion. Using the planning and execution phases of transportation for rate matching eliminates the need to manually match loads’ pay rates in the settlement phase, saving both parties time and money. Carriers no longer need to generate paper invoices and mail them to the shipper. Shippers no longer need to tediously compare paper invoice rates to paper contract rates. The matching process is performed automatically as loads are transferred to the WebSettle® module, hence removing the invoice altogether. All potential rate discrepancies are flagged per the shipper-defined rules and cannot be paid until they are resolved.
Payment After loads are matched (automatically or manually), they are then grouped together for payment. After final approval, the loads are paid. The LeanTMS supports different methods of payment. • Manual (Shipper’s Internal Accounts Payable Department) • 3PFP (Third Party Freight Payment) In the event a carrier disputes the payment amount of a load after it has been paid, shippers can create Miscellaneous Charges to account for the difference. Once a Miscellaneous Charge has been approved, it can be paid just like a load charge. Payment matching timeframes are dependent upon the shipper’s requirements.
LeanLogistics 1351 S. Waverly Road Holland, MI 49423 www.leanlogistics.com P 866.584.7280 A Brambles Company
