Streamlining the Broker Back Office: How Automation Boosts Freight Invoicing Efficiency

As of the end of April, there were 27,206 active freight brokerages in the United States, according to Brush Pass Research. In other words, there’s a lot of competition in the freight brokerage industry – and a lot of freight invoices. How do they best differentiate themselves? They take advantage of back-office software for freight invoices.

Traditional Back-Office Operations Leave Brokers Behind

“The back office of a freight brokerage represents a complex network of departments and roles, all essential to the seamless functioning and profitability of the business,” Freight 360 said. “Although the freight broker industry is often associated with front-end operations, such as sales and business development, the back-office operations and their personnel form the backbone of the business, ensuring the company stays afloat and thrives.”

Many of those 27,206 freight brokerages in operation probably don’t have a “complex network” in the front office, let alone the back office. And they may be worked to the bone, ensuring the brokerage keeps its doors open.

The back offices of many of those 27,206 freight brokerages may still be relying on manual data entry, manual freight invoicing, and manual cash reconciliation. These back-office inefficiencies make cash flow management and freight brokerage business analytics difficult.

Transforming Broker Back-Office Operations Through Automation in Invoicing

Upwell has revolutionized freight invoicing by automating repetitive tasks and eliminating human error. Conduct your own comprehensive process evaluation, and you’ll see what a win Upwell would be for your freight brokerage. Select the right automation tool. (It’s Upwell.) Then conduct training so the entire back office is on board to upend your freight invoicing processes with Upwell.

Comprehensive Process Evaluation

Before implementing automation, conduct a thorough assessment of current invoicing processes within the broker's back office. Identify pain points, bottlenecks, and areas where automation can bring the most significant improvements.

Involve key stakeholders from different departments to gain insights into their specific invoicing needs and challenges. This collaborative approach ensures that the automation solution addresses the diverse requirements of the back office.

Then get an Upwell demo.

Select the Right Automation Tool

Choose an automated invoice-to-income platform that aligns with the unique invoicing requirements of freight brokers. Look for features such as invoice validation and seamless integration with existing TMSs and accounting software.

Among Upwell’s stellar solutions are:

• Last Check, which leverages large language models to pre-audit invoices to ensure each one is accurate and complete before it leaves your system.
• Distribution Automation, which automates invoicing and ensures each invoice reaches its destination the way your customer requires, whether that’s via EDI, API, email, or directly into online portals.
• Online Payment Portal & Options, which offers customers a variety of payment methods through a secure, easy-to-use online portal.
• Cash Application/Remittance Processing, which quickly matches payments and invoices and accelerates cash flow.
• Automated Statements & Payment Reminders, which enable freight brokerages to send personalized and strategically timed communications.

Robust Training and Change Management

Freight 360 painted a sunny picture of accounting, credit, carrier compliance, and claims departments, saying that while they “function in their own unique ways, the harmony between them is a fundamental aspect of a successful freight brokerage. For instance, the Accounting and Credit departments must closely align to understand the financial health of customers and manage risks. Similarly, the Carrier Compliance Department needs to work with the sales and operations departments to make sure the right carriers are being used and the bad ones are being rejected.

“To make this cooperation effective, a healthy and transparent communication system, clearly understood company procedures, and mutual understanding of each department’s role is really important.”

One could argue that, instead, it is really important to automate freight invoices. It’s like a beam of sunshine in your back office – as long as you provide comprehensive training to back-office staff on how to use the automation tool effectively. Offer hands-on training sessions, tutorials, and access to user guides to familiarize employees with the new invoicing processes.

Leave Your Freight Invoicing to Upwell

Freight 360 said when every department in the back office comes together, it creates “a fully functioning, profitable freight brokerage. Their collective effort ensures the company stays compliant, profitable, financially healthy, and well-positioned to manage any operational hurdles that come its way. Their behind-the-scenes work, which often goes unnoticed, is truly the lifeline of any successful freight brokerage company.”

When the life of a freight brokerage is on the line, automate freight invoicing for error-free and efficient back-office operations.

Let Upwell throw you a line and breathe new life into your back-office operations.

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