When one of the largest US freight carriers like FedEx makes a significant change in late payment charges (LPCs)— to the tune of 6% of the total invoice—it has substantial implications for shippers. Because FedEx negotiates different rates with all its customers, those with high freight volumes can negotiate better terms, including late payment charges.
But some customers that are exempt from LPCs have unknowingly paid rogue late fees. These late payment charges apply to the total invoice, causing a potential uptick in transportation spending, which can break already expanding budgets.
In addition, many CTSI-Global clients are exempt from FedEx’s LPCs. Fast action was needed to implement a payment solution that would be able to recognize LPCs for exempt customers. Without proper oversight, this invoicing problem could cause overpayment for our clients.
Isolating exempt late payment charges
Freight shipping, especially at large volumes, requires vigilant monitoring to ensure accurate payment on invoices. The exempt status is no guarantee for shippers who must proactively protect their bottom line, given the ever-increasing transportation costs.
Any attempt to manage late payment verification manually is an overwhelming and tedious process. As clients transition invoice processing and audit intelligence to CTSI-Global, they expect a robust solution for isolating LPCs, particularly customers with LPC exemptions.
A crucial problem with the late payment charges is that invoices might only reference the summary invoice in question; they don’t include the specific tracking numbers that are open and past due.
Preventing overpayment through automation
Working with a trusted logistics partner empowers our clients to pivot quickly amid changing conditions. Proper oversight is crucial, as exempt status proved no guarantee against late payment charges, and undetected errors would be extremely costly.
We implemented logic into our freight audit and payment system that immediately connects the summary invoice and every associated tracking number previously logged in its database, saving reviewers vast amounts of time. Within three months of charging the new 6% late fees, CTSI-Global’s auditing system identified thousands of incorrect invoices with errant late payment charges that would have cost our clients hundreds of thousands of dollars.
CTSI-Global’s freight auditing and payment solution can not only identify but also automatically zero out LPCs to prevent overpayment and unnecessary havoc on transportation budgets.
Fast-evolving situations require partnership
We recognize that manual invoice processing is slow, time-consuming, and the chance of costly error is high. That’s why we design automated freight audit and payment systems that offer vital advantages, including greater transparency and accountability for our clients across the Americas, Asia, the Pacific, Europe, the Middle East, and Africa.
When one of the largest freight carriers makes a sudden change, we adapt to help our clients navigate these shifts using the latest technology. As a leading global business intelligence provider, we disrupt the logistics services industry through modernization with cloud-based solutions. As a result, our clients gain greater operational efficiency, increase supply chain visibility, and have better financial control at far less cost.
Rather than simply handing over the technology, our team works with clients to deliver actionable insights. For more than 60 years, in countries ranging from America and Ireland to Singapore and India—we’ve served as an agile partner to keep clients ahead of the curve, no matter what challenges arise.