Study: Most Freight Brokers Still Pay Carriers with Paper Checks - Fleet Management

Examine: Most Freight Brokers Nonetheless Pay Carriers with Paper Checks – Fleet Administration

Over two-thirds of carriers and shippers instructed Denim that eliminating paper checks would enhance their enterprise operations, in keeping with Denim.

Photograph: HDT/Canva by way of vtwinpixel, dougberry

Almost 60% of the 168 freight brokers surveyed by monetary enablement platform Denim indicated they nonetheless pay carriers and shippers with paper checks, regardless of over two-thirds (68%) saying eliminating paper checks would enhance their enterprise operations.

Denim’s inaugural Freight Dealer Pulse Report provides insights from freight brokers and highlights the significance of time effectivity in operations and the way the trade advantages from digitalization.

In response to the report, freight brokers spend an excessive amount of time on dealer operations, together with invoicing, collections, and funds. Over half of respondents (52%) report that their group spends 25% or extra of their time engaged on dealer operations, which totals 480 hours a 12 months based mostly on the common 40-hour work week.

Contemplating this important time funding — 78% agree that their enterprise can be extra profitable in the event that they spent much less time on dealer operations.

“Time is all the pieces in logistics,” mentioned Bharath Krishnamoorthy, CEO and co-founder of Denim, in a press launch. “Shippers want items delivered on time, and carriers should be paid on time. As a result of they act as connectors within the provide chain, freight brokers should have a streamlined funds course of to keep away from errors and delays. Denim’s report showcases the necessity to spend money on smarter instruments to optimize again workplace operations and drive income.”

Extra findings from Denim’s report embrace:

  • 84% of freight brokers are optimistic for 2023
  • 74% of enterprise freight brokers (common $2 million in month-to-month income) are prioritizing enhancing total effectivity within the 12 months forward. 
  • Rising gasoline costs was the highest problem (63%) of freight brokers in 2022
  • Over half (58%) of freight brokers use bill factoring to finance freight and receivables.
  • 97% of freight brokers agree that constructing belief with carriers and shippers improves enterprise.

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