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In today’s competitive freight market, brokers are on the lookout for ways to increase margins and improve efficiency. With low rates and carriers scrambling for loads, it’s crucial to pay attention to two key aspects of operations: accuracy and scalability.
The challenge, of course, is how to get there. Accessing capital and securing timely payments is critical, but achieving those goals requires the right technology to streamline operations. Automation solutions are proving to be game changers by delivering precise billing and creating room for scalable growth.
Many brokers and third-party logistics firms still rely on manual processes to ensure billing accuracy, which can be time-consuming and prone to errors. In this scenario, teams pore over every document to ensure customer requirements are met before sending out invoices. While this careful review helps reduce days sales outstanding (DSO) by minimizing delays due to missing documents, it also eats up a lot of man-hours.
This is where automation solutions make a significant impact. Tools that accurately review documents and generate invoices help speed up the billing process, giving brokers faster access to capital. The more accurate the platform, the less risk there is of delayed payments.
However, not all automation platforms are created equal. Some offer as low as 50-60% accuracy, while others reach 95-98%. That 35-45% gap can make a world of difference. With higher accuracy, brokers can reduce the number of manual corrections and human errors, which accelerates their accounts receivable (AR) and accounts payable (AP) processes. And It’s not just about saving time — it’s about positioning your brokerage to run smoothly and efficiently, even as market conditions shift.
As the freight market shows signs of change, scalability is becoming important. Brokers must be ready to handle higher volumes of loads without sacrificing efficiency. When a brokerage is equipped with automated processes, it can scale seamlessly without the need for extra hires or time-consuming training programs.
The right automation tools empower brokers to manage an increase in loads while keeping operational costs low. These platforms ensure that workflows remain efficient, even during peak times. This means brokers can focus on building relationships and growing their business, rather than scrambling to meet demand.
Think of it from the perspective of a shipper or carrier. If a broker isn’t prepared to handle increased volumes, the consequences can be severe: missed deliveries, delayed payments, and unhappy partners. Brokers that have invested in scalable automation solutions don’t face this problem. They are better prepared for surges in volume and can continue to deliver high levels of service without worrying about the strain on their operations.
Brokers and 3PLs who prioritize accuracy and scalability will have a significant edge over their competition. By adopting automation tools that streamline billing and reduce errors, brokers can ensure they maintain smooth operations today and are prepared for whatever tomorrow brings.
If your brokerage isn’t already leveraging these tools, now is the time to act. The market is moving fast, and those who invest in the right technology will not only survive but thrive in the months and years ahead.
