Benefits of Digital Freight Matching
In the shipping industry, freight matching is a common practice which is defined as the process through which consignees are paired to the flight carriers by the use of truckload boards. Shipping companies do the freight matching to be able to minimize losses that may arise when a consignments travels for a long distance without having been filled to capacity. Companies or independent owners can carry out the freight matching using the load boards. Potential customers usually receive information to space available in a given truck and the destination of the consignments so that they can decide on whether to take up the space if it suits their needs. The potential customers will then use the load boards to match the needed requirements for shipping which will then afterwards be matched to the trucks available and their destination. Experience is very important to operate the load boards effectively and ensure that it is productive.
Innovation has lead to major improvements in the sector of shipping where freight matching can depend on the web. The innovation have been culminated with the development of digital freight matching which uses platforms in the web to connect individuals and companies who are shipping to the trucking capacity that is available. Digital freight matching has reduced the time that was being used when working with the traditional freight brokers. Digital freight matching has done so many things become easy such as instant proof of delivery of the consignment, GPS tracking in the real time as well as automated invoicing and payment. The major benefits that have been achieved through the digital freight matching are the reduction of traffic from the trucks as well as lowering the rate of pollution. With reduced number of backhauls and consolidation of various shipments, traffic and pollution has been greatly reducing.
Freight factoring is an important component in the shipment industry. Freight invoice factoring can therefore be describes as where owners and truck operators receive payment as soon as they deliver consignments to their recipients. The owner or the operator of the trucks needs to submit a freight invoice to the freight factoring company together with a proof that the consignment has been delivered. To receive payments indicated on the invoice, the freight factoring company need to verify the invoice for assurance that the customer will pay. The company usually charges a given percentage of the total freight involve where one will receive the amount in invoice less the charges. Once they pay, they usually wait for the customers to pay for the freight of their consignments. Invoice factoring is a solution for truckers to enable them get finances soonest possible after delivery other than waiting till when the clients will pay.