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Managing Freight Payment With No Time to Slack Off
Author: Anthony Joh



In the end, all outsourcing relationships are founded on trust. You can write a contract that drills down to the smallest details, but at some point you have to rely on the integrity of your partner. And when that trust is violated, the consequences can be severe.

 

Take the world of freight payment and auditing. Two major players in the business, Trendset Information Systems and TransVantage Solutions, Inc., filed for bankruptcy protection last year. Each was accused of embezzling millions of dollars of their clients' funds. Company principals were charged with diverting money for their personal enrichment, improperly commingling accounts and failing to pay carriers. Shippers were left on the hook, owing huge amounts to their carriers and logistics providers.
 

No surprise, then, that financial responsibility tops the list of shippers' concerns today, when they're dealing with freight-payment vendors. The vast majority of providers is, of course, honest, and handles funds scrupulously. But shippers need to be vigilant in their dealings with prospective partners.


What all shippers are seeking, says Erickson, is "the single point of truth." Shippers and carriers alike want one system that can process and pay all their transactions, providing global visibility along the way. Clean data is an essential precursor to deploying new tools for business intelligence and analytics.



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The following article has been published by Supply Chain Brain on Jan. 20, 2014
    Author - Robert J. Bowman

For the full article, please click on this link

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