Freight claims are one of the most essential moving parts involved in supply chain management. When products are shipped around the globe, unexpected hurdles can—and do—arise. Efficient freight claims management ensures that companies are correctly compensated for losses or damage that occur during transport.
But claims can be a lot to keep track of—especially when shipments cross borders and oceans. With margins and customer relationships on the line, every aspect of the claims process—from identification to resolution and all the steps in between—needs to be carefully managed. Like many other spokes in the supply chain wheel, the best claims management process comes down to accuracy, efficiency, and recovered dollars.
Freight claims management is critical to financial success
Effective freight claims management means keeping track of paperwork, timelines, and milestones. To have a claim approved, it’s imperative to maintain accurate and comprehensive records from start to finish, including bills of lading (BoLs), delivery receipts, inspection reports, and photos or videos of damaged goods. Without this information, companies can face delays or even denials of their freight claims.
To add another layer of complexity, the global nature of modern supply chains means that claims are subject to a wide and varied set of laws and regulations that can not only be complex but change completely from one region to another. It can be daunting—and time-consuming—to manage diverse documentation and deadlines, but missing a claims window or filing incorrectly could mean shippers say goodbye to their only chance of recovering crucial funds.
Accurate claims are key for avoiding challenges and disputes
Due to the sometimes delicate nature of freight claims management, certain parts of the process need to be handled diplomatically. Notably, if large amounts of money are involved, a shipper can find itself facing an extra set of challenges when it comes to determining liability, valuing the loss or damage, or handling disputes. In these instances, companies must dedicate a large number of resources to making sure that communication between shippers and carriers remains clear and effective—a true challenge when multiple languages are involved—while staying on top of the resolution timelines and maintaining accuracy.
Today, the more freight claims management can be streamlined, digitized, automated, and centralized, the better. And many companies are finding a new level of success using a transportation management system (TMS).
TMSs change the game with nimble tracking and centralization
The powerful technology found in a platform like CTSI-Global’s Honeybee TMS offers a comprehensive solution to many of the challenges associated with freight claims management. Using automation, real-time tracking, and integrations with other transportation systems, a TMS takes much of the uncertainty and complexity out of the freight claims process.
First and foremost, a TMS reduces the likelihood of missing paperwork and forgotten contract obligations by automating the documentation process. Ensuring that all necessary records are organized and easy to access through a centralized document center makes a large component of the claims process more efficient. Shippers can easily search for and view past order forms, BoLs, and other essential shipping contracts from one intuitive platform.
Digitization also ensures seamless real-time communication between all parties. A TMS provides automated carrier notifications and makes it easy to file overcharge, shortage, or damage claims. It tracks shipments as they are transported to establish a clear chain of custody—an essential piece of warding off legal disputes—and can monitor claims through resolution.
By creating an accurate and organized framework for managing freight claims, TMSs greatly reduce the time to resolution and free logistics teams from tedious paperwork. That’s a huge advantage, especially for smaller companies.
Make freight claims a priority, not a burden
It’s clear that freight claims management presents numerous challenges, but implementing a robust system like Honeybee TMS can revolutionize the process by opening up greater efficiency, savings, and satisfaction for stakeholders across the board.
Change the way you handle freight claims. Contact CTSI-Global to drive greater visibility and productivity with powerful transportation management technology.
