Freight Payment Improves Your Business
Learning all there is to know about Freight Payment can be a challenge. Not only should you have a complete understanding of what this service is, you should also be well educated in the history of it as well. You also should be aware of the benefits that can be provided as well as the potential for problems that are related to this type of service. If you fall short in either of these areas your decision making process when it comes to choosing a service to utilize in your day to day business will be limited and potentially harmful. With this in mind, read on to learn more about this service and how you can leverage it for your benefit.
Oddly, these services work in pretty much the same way they did when they were implemented back before the great depression in the 1920s, and they went essentially unchanged until fairly recently. These services were created at a point in American history when the freight industry, and specifically the freight payment industry, were heavily regulated by the federal government. It began as a creation by a group of banks along with a number of carriers and shippers.
The alliance that was formed was called the National Association of Freight Payment Banks. The mission at the time, as it remains today, was for settling shipping bills. This was done as per the parameters regulated by the government. Credit extended for 7 days for motor carriers and rail was limited to 5 days. In general, the big idea was to improve the complete shipping process. While successful, the process was improved upon years later.
As time went by deregulation took place and the rules were relaxed to a degree. This change took place roughly 60 years after the implementation of the service. Credit was extended as were the functions provided. New services included auditing invoices, verifying various rates and payment confirmation related to shipping costs. Services also began to offer convenient logistics reports as well.
Generally speaking these days, your company's carriers handle the submission of your shipping invoices to your payment provider. They then verify the point of origin and the final destination, confirm delivery and essentially provide for a streamlined way to facilitate communication between all parties involved.
When you are beginning the search for a service provider there are a multitude of things you should be looking for. Among these are a financially secure organization, one that provides great customer service, and one that maintains a good working relationship with their carrier associates. Each of these items is critical and great care should be taken to investigate each one thoroughly.
You may also have concerns about parcel shipping, Ethics, or even Web Based tools that can provide quick and easy access to documents along with timely resolutions to problems. In the end the service should provide, among other things, reduced expense, better management of information, and should save you time.
Your business can certainly benefit from the implementation of a freight payment service. You simply need to understand how such a service is used and fully recognize the qualities that determine which company will be the best fit for your business.
Oddly, these services work in pretty much the same way they did when they were implemented back before the great depression in the 1920s, and they went essentially unchanged until fairly recently. These services were created at a point in American history when the freight industry, and specifically the freight payment industry, were heavily regulated by the federal government. It began as a creation by a group of banks along with a number of carriers and shippers.
The alliance that was formed was called the National Association of Freight Payment Banks. The mission at the time, as it remains today, was for settling shipping bills. This was done as per the parameters regulated by the government. Credit extended for 7 days for motor carriers and rail was limited to 5 days. In general, the big idea was to improve the complete shipping process. While successful, the process was improved upon years later.
As time went by deregulation took place and the rules were relaxed to a degree. This change took place roughly 60 years after the implementation of the service. Credit was extended as were the functions provided. New services included auditing invoices, verifying various rates and payment confirmation related to shipping costs. Services also began to offer convenient logistics reports as well.
Generally speaking these days, your company's carriers handle the submission of your shipping invoices to your payment provider. They then verify the point of origin and the final destination, confirm delivery and essentially provide for a streamlined way to facilitate communication between all parties involved.
When you are beginning the search for a service provider there are a multitude of things you should be looking for. Among these are a financially secure organization, one that provides great customer service, and one that maintains a good working relationship with their carrier associates. Each of these items is critical and great care should be taken to investigate each one thoroughly.
You may also have concerns about parcel shipping, Ethics, or even Web Based tools that can provide quick and easy access to documents along with timely resolutions to problems. In the end the service should provide, among other things, reduced expense, better management of information, and should save you time.
Your business can certainly benefit from the implementation of a freight payment service. You simply need to understand how such a service is used and fully recognize the qualities that determine which company will be the best fit for your business.
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