Cash Flow: There’s an App for That
By Robert Bleier, CFO, Tailwind Transportation Software
Know of the demands placed upon your business for cash. You have drivers all over the continent, trucking hard and doing the best they can to make a decent living. They get paid twice a month, and they know that if they want to get paid, they better find a way to get all those PODs (Proofs of Delivery) in before the big boss in accounting cuts them off. So, they usually look for the closest UPS or Purolator location so they can send PODs in using ‘super-rush’, supersonic air mail so that they arrive at the office about 15-minutes before they are due.
When the accounting office gets the POD, they may notice that ‘John D. Driver’ forgot to get a signature from the receiver, or maybe he sent the wrong POD to the wrong office – and now you have a complete ‘cluster-ma-call-it’ on your hands.
So, eventually you get that all figured out and are now finally able to get the POD into your dispatch/trucking software system and invoice your customer – probably 20-25 days after delivery.
But your customer also wants you to send the originals in the mail to them, which you know is going to take our good friends at US Postal Service / Canada Post at least five business days to get to the town 20-miles away. In most cases your customer receives the invoice 25-30 days after delivery, but maybe it’s even 45.
If you’re lucky your customer will pay you at the 30-day mark from when they received the invoice, which makes it at least 60-days since you delivered the load, and at least 45-days since you paid John D. for the great work he is doing out there. It’s no wonder that trucking companies are prolific users of factoring companies for their receivables!
The simple answer is Electronic proof of delivery (e-POD).
All your drivers will likely have smart phones. And all they need to do is download an app so they can get that POD back to your office automatically, electronically, and best of all – immediately! Once they have one of those – they can just click to submit the POD – directly into your TMS. No lost PODs, no misdirected mail, no expensive courier charges – just a click and straight to accounting. Then with a quick look over, an invoice can be created and sent from the very same trucking software system directly to your customer.
Now while some apps may be expensive, there is indeed at least one, Tailwind POD Complete, that comes free with that TMS. The alternative is to keep paying for ‘supersonic airmail’, data entry costs, time spent looking for late or lost PODs.
Cash flow – there is an app for that!
For more information please call 866.441.0441, email us at firstname.lastname@example.org or visit www.tailwindtransportationsoftware.com.☚