DO YOUTRUSTYour Payables Clerks

with YourRETIREMENT

FUND?

Carriers are not settlingfor average treatment

Business owners should ask themselveswhether their Accounts Payable departmentsare as transparent, efficient and professionalas they need to be, in order to keep theircompanies from losing carriers. This is animportant question, because in today’seconomy, outdated payment policies cancause a company to lose carriers, which cannegatively affect earnings and reduce thecompany’s enterprise value.

Since most business owners have the majorityof their savings invested in their companies,does it make sense to rely on payable clerks toimplement decades old practices to protect anasset which, for many business owners, willbecome their retirement fund when they sellthe business? The answer to that questionshould be “NO”, but for many business owners,that’s not the case.

If you’re one of those owners, you may need torethink your A/P policies, especially if they’vecaused fluctuations in your credit score, orrestricted access to carriers and limited yourability to cover profitable loads. If either hasoccurred, you may be one of those companieswho believes that the only purpose of your A/Pdepartment is to open mail, audit invoices andissue checks.

It wasn't that long ago when the goal of everythird party was to be recognized as a “GoldBook” member.

But, times have changed.

Running a transportation companywill always be a game of inches.If your team isn't paying attention to detail, it could be costing you in the end.

In the aftermath of the housing crisis and thelimited recovery that followed, a company’scredit score is not enough to retain and attractcarriers. That’s because credit scores are anaverage measurement of a company'sperformance. And, the truth is, with fewercarriers available to third parties than everbefore, carriers are not settling for averagetreatment.

The recession robbed carriers of their cashreserves, and it caused banks to withdraw orreduce lines of credit. As a result, if a carrier isnot paid on time, doesn’t get a call or an emailreply, or simply has a bad experience with acompany’s payables department, it can bereason enough for that carrier to go “dark”.They stop answering your phone calls andbidding on your company’s loads.

How much are outdated A/P practices costing your company?

THE BIG PICTURE

ANALYSIS / THOMAS WHALEY

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YOUR A/PDEPARTMENTMUST BE:RESPONSIVEAnswer all carrier inquiries in a timelymanner

TRANSPARENTGive carriers the ability to confirm theirinvoices have been received, confirmtheir charges, and know when theirinvoices will be paid

FLEXIBLEBe able to meet and adapt to a carrier’sspecial requests or uniquecircumstances

FRIENDLYBe courteous and helpful to carriersduring every interaction

AUTOMATEDProvide automated processes tofacilitate the receipt, handling, andprocessing of carrier invoices

Business owners must offerexemplary A/P services totheir carriers

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The most successful companies in the industryare the ones that recognize their carrier’sneeds and take steps to meet them. To becomeone of those companies it may be time to re-evaluate your A/P processes and make thenecessary changes to improve your carrierrelations and settlement practices.

Although change is never welcome, the timeand cost to build an A/P department that catersto the needs of your carriers may be the bestinvestment your company will ever make. Oncethe changes are made, you’ll discover how easyit is to attract and retain carriers by delivering anew message of flexibility and cooperation.You’ll also have newfound competitive strength.After all, what customer doesn’t want a brokerwho has access to satisfied and qualifiedcarriers?

In the end, what matters most to businessowners is the satisfaction that comes fromexperiencing new and growing profitability,which is the key component of a company’sgrowing enterprise value.

If business owners are willing torisk a lifetime of savings tocreate and run a business, theyshould be willing to doeverything that’s necessary togrow its value. If improvingaccess to carriers is a way to dothat, then modernizing acompany’s A/P department is ajob that should not be delayed.

LEADTHE WAY

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ThomasWhaleyThe President & CEO of Level One Technologies, Inc. Hehas over 25 years of experience in the transportationindustry, and is dedicated to helping companies gain acompetitive edge through the use of technology.