The transportation industry can take many forms. Examples range from transportation and logistics to customer-focused transportation. Consumer-based transit tends to be more cash-heavy and generally involves immediate payment. However, transportation and logistics have not fully capitalized on the ability to automate collections.
3 Ways That Automation Can Boost Your Business
If you’re still using spreadsheets to manage your accounts receivable process, it’s time to automate collections software. Upgrading to a more advanced automation system can positively impact your business and boost growth.
1. Improving Cash Flow Projections
If you manage transportation projects, you understand how important it is to have a clear and concise cash flow projection. You need this information to answer critical business operations questions, such as these:
- How much fuel can we afford to pay for, and how far can our teams travel?
- Do we have the resources necessary to expand our route or the geographical areas we serve?
- How many new workers can we afford to hire to keep up with the growing demand for transportation and logistics services?
- What safe and effective maintenance schedule can we afford for our fleet?
- How many new vehicles can we add to our fleet?
Cash flow projections become increasingly difficult as your business grows. An automated collections management system lets you quickly see which invoices are due and when to expect payment. This feature makes it easier to forecast your company’s cash flow and make more informed decisions about future projects. In fact, it can complete the calculations for you.
2. Reducing Time Spent on Invoice Disputes
When you manage the invoicing process manually, errors become likely. These errors can chip away at consumer trust and lead to disputes that further erode the business relationship. Automating your collections process can help you avoid these disputes by ensuring that invoices are accurate and up-to-date.
You’ll also be able to take advantage of features like automatic late payment reminders. Timely messages can prompt customers to take action and avoid falling behind on their payments. In some cases, it may even lead to early settlement.
3. Improving Customer Service and Collections
Poor customer service is one of the leading causes of accounts receivables problems. When your customers are unhappy, they’re less likely to want to do business with you. They may even stop using your services altogether.
An automated collections system can help you improve customer service in two main ways:
- By providing a self-service portal, you can give your customers 24/7 access to their account information. They can view their invoices, make payments, and update their contact information without waiting for someone to get back to them.
- You can take a proactive approach to collections by automating reminders and late payment notices. It shows your customers that you’re serious about collecting payments and that you’re willing to work with them to find a solution.
Challenges That Automated Payment Collection Can Resolve
Transportations and logistics bring unique risks and challenges to running a business. While automating collections process tasks will not eliminate all of these, they can significantly reduce some.
Without automation, there is little transparency in the collections process, making it difficult to track progress and measure success. Lack of transparency can also create the perfect opportunity for fraud and miscalculations to flourish.
As a business grows, the ability to scale operations becomes increasingly vital. This is especially true in the transportation industry, where companies can quickly become bogged down by manual tasks.
The transportation industry is not immune to the effects of the ongoing labor shortage. This can make finding and retaining qualified staff difficult, which can further complicate the collections process. Automation can reduce time spent on tedious tasks so that your workers can better use their time.
Why Automate Collections Management
There are many ways to transform the AR process, so why choose automation? Collection is the most cost-effective way to streamline the entire process from start to finish. Businesses can save time and money by automating key tasks such as issuing invoices and payments while improving their collections rate.
In addition, automated collection software provides businesses with valuable insights into their customers’ payment behavior. They can use this information to make better decisions about pricing, products, and services.
The Bottom Line
The transportation and logistics industry has taken several hits over the past few years. A growing labor shortage and increased demand for trucking services and supply chain expansions have weighed heavily on the industry. Streamlining accounts receivables can free managers to focus on the aspects of business that most need their creativity and intellect.
Gaviti is a leading automated payment collection solution for the transportation business. Whether you want to improve DSO or reduce labor costs, you’ve come to the right place. Book your free demo to get started.