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It’s up to them… What Freight Bill Payment Providers should offer
By Harold B. Friedman

Companies looking at outsourcing freight payment services need to understand the capabilities of service providers, while not losing sight of the fundamental considerations of selecting a vendor. Here are 10 key issues potential outsourcers should evaluate when looking for a freight bill processing vendor.

1. Financial security. Does the vendor have audited financial statements, an annual SAS 70 Type II review, and at least a $50-million Employee Dishonesty Bond?

2. Customer service. How does the provider track customer service issues to resolution? Does it use a Customer Relationship Management tool? What types of key performance indicators does it maintain?

3. Carrier relations management. Does the vendor have staff committed to maintaining outstanding carrier relations? Do they visit with carriers to communicate, resolve issues, and create efficiencies that benefit all parties? How do your carriers view the vendor; would they recommend the company?

4. Document imaging. Are hard-copy bills scanned, with images made available on the vendor’s Web site, on DVD or CD?

5. Web-based data access. Web is the prevalent method of presenting data today and the vendor’s site should include standard and ad-hoc reports, drill-downs, a graphics capability, mathematical calculations that result in new fields, client-driven report scheduling, and onscreen and email report delivery.

6. Coding, editing, and validation. How comprehensive is the vendor’s ability in this area? Can it derive cost centers from other data elements? Rules should be table-based and event-driven to ensure that updates are made quickly and easily.

7. Freight liability. How does the vendor determine if the bill should be paid? Does it ensure supporting documentation is attached? Can it perform electronic validations to your bill of lading or purchase order file?

8. Web-based bill repair. Can freight bills that need customer approval be repaired from the vendor’s Web site? Can you easily view images of the freight bill and supporting documentation to resolve bills that are being questioned?

9. Parcel shipment capabilities. Does the vendor have the ability to meet the integrated carrier’s requirements to obtain refunds for late delivery shipments that are manifested but not moved? Does it provide address correction and break down all miscellaneous charges?

10. Ethics. Does the vendor have a code of ethics? Does it tell you what’s good about its service rather than denigrating its competition?


Harold B. Friedman, Data2Logistics
Reprinted from Inbound Logistics magazine
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