Building Better Brokerages: Leveraging Freight Invoice Automation for Streamlined Back-Office Operations

Freight invoice automation is key to streamlining back-office operations, particularly in the still-crowded freight brokerage industry, with businesses fighting to get ahead of the pack.

According to data from Brush Pass Research, at the beginning of August, there were 3,420 fewer freight brokerages operating in the United States than at the same point last year. Freight brokerages need to take advantage of every opportunity to not only survive but thrive. Automating back-office operations is an easy fix to manual, slow, and error-prone processes. Back-office automation can also keep freight brokerages’ customers happy — and help them win more business.

And it looks like there’s finally business to be had. A mid-July FTR Transportation Intelligence report said data reinforced its assessment “that the truck freight market has bottomed out.”

Efficiency Begins in the Brokerage Back Office

You may have a few longtime bookkeepers manually handling all the back-office tasks, including freight invoicing, payment processing, and compliance. But they have a lot on their plates — and the mountain of tasks continues to grow as the business does.

Common inefficiencies in manual back-office freight brokerage processes include:

• Time-consuming and error-prone tasks.
• High operational costs and delays.
• Difficulty in managing and tracking data.

It’s not your bookkeepers’ fault. There’s just so much to do and just so many hours in a day. Back-office automation could save loads of time and free up employees for more strategic work. Freight brokerage employees and customers will both be happy with the efficiency gains from back-office automation.  

Leveraging Automation in the Brokerage Back Office: Three Strategies

Look at the big picture. While the number of freight brokerages with operating authority has dropped by 11.5% in the past year, there are still thousands and thousands clamoring for freight. Offering freight invoice automation as part of a streamlined back office makes it easier for shippers and carriers to work with brokers, and these days, no one needs any unnecessary headaches.

Back-office automation eliminates risks and increases opportunities for freight brokerages to strengthen customer relationships, win more business, and improve cash flow.

Streamlined Integration for Simplified Processes

Behind-the-scenes integration with transportation management systems (TMSs), enterprise resource planning (ERP) processes, and accounting software enables streamlined workflows and, at the same time, reduces the need for manual data entry and results in improved freight invoice accuracy.

Automated Invoicing for Optimized Cash Flow

Automation speeds up freight invoice generation and distribution — and payment collections. Not only are invoicing cycles faster but the number of errors is slashed with the elimination of manual, error-prone processes. The result is improved cash flow.

Customizable Automation for Maximum Accountability

Not all freight brokerages are the same. Customizable back-office automation solutions can be tailored to specific business needs. For example, automated payment reminders can be sent at preferred intervals and customized to match each freight brokerage’s brand voice. Customized automation increases the freight brokerage’s back-office control and improves compliance tracking.

Let Upwell Handle Your Freight Invoice Automation

At Upwell, we have automated the freight invoice process to ensure each bill reaches its destination exactly as customers require, whether that’s through electronic data interchange (EDI), application programming interface (API), email, or directly into online portals.

We have harnessed the power of artificial intelligence (AI) to transform the freight invoice-to-income process. Upwell is an invoicing and accounts receivable automation platform designed specifically for logistics and trucking. We help freight brokers get paid faster by automating the tedious tasks that bog down their back offices. From pre-auditing invoices to ensure accuracy to streamlining payment collections, Upwell’s freight invoice software improves freight brokers’ back-office efficiency — and cash flow.

Our features include:

• Smart Invoices, automating the extraction of payment request details utilizing AI, reducing manual data entry errors.
• Distribution Automation, guaranteeing invoices are sent to customers as they want them.
• Last Check, leveraging large language models to pre-audit freight invoices against customer-specific rules, ensuring each one is accurate and complete before it leaves a brokerage’s system.
• Integrated Payments, enabling freight brokers’ customers to make immediate, secure transactions with multiple payment options.  

Upwell customers are realizing a four-day decrease in days sales outstanding (DSO), a 50% operational expense decrease per employee, and a 10% increase in cash flow.

Get an Upwell demo today.

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