What is the process of freight bill processing or data entry?

• May 20, 2023 Data Entry Services, Data Processing

Freight bill processing, also known as freight invoice processing or freight data entry, refers to the systematic handling and recording of information related to freight shipments and associated financial transactions. It involves the collection, verification, and entry of data from various documents such as bills of lading, delivery receipts, and invoices into a company’s information systems or accounting software.

The process typically includes the following steps:

Receipt of Documents

Freight bill processing begins with the receipt of relevant documents such as bills of lading, proof of delivery, and invoices from carriers or freight forwarders.

Data Collection

The necessary data from these documents is collected, including details such as shipment origin and destination, consignor and consignee information, carrier details, freight charges, and any additional surcharges or accessorial fees.

Verification

The collected data is carefully reviewed and verified for accuracy, ensuring that the information matches the shipment records and any agreed-upon rates or contracts. Discrepancies or errors are addressed and resolved.

Data Entry

The verified information is entered into the company’s system or accounting software. This step involves accurately inputting the data into appropriate fields or modules, often using specialized freight management or enterprise resource planning (ERP) systems.

Coding and Classification

Freight bills may need to be coded or classified based on specific criteria such as shipment type, product category, customer account, or cost center. This helps in tracking and analyzing freight expenses for financial reporting purposes.

Exception Handling

During the data entry process, any exceptions or discrepancies that cannot be immediately resolved are flagged for further investigation or clarification. These exceptions might include incorrect or missing information on the documents.

Reconciliation and Payment

Once the freight bill data is processed and reconciled, it can be used for various purposes, including generating reports, calculating transportation costs, and facilitating payment to carriers or freight service providers.

Efficient freight bill processing helps companies maintain accurate records, monitor transportation expenses, streamline payment processes, and gain insights into their shipping operations. Automated systems and optical character recognition (OCR) technology are often employed to enhance the speed and accuracy of data entry, reducing manual effort and minimizing errors.

What are the benefits of outsourcing freight bill data entry services?

Outsourcing freight bill processing, or any business process for that matter, can offer several benefits to companies. Here are some advantages of outsourcing freight bill processing:

Cost Savings

Outsourcing freight bill processing can result in cost savings for companies. By outsourcing to a specialized service provider, businesses can avoid the costs associated with hiring and training in-house staff, investing in infrastructure and technology, and maintaining ongoing operations. Outsourcing also allows for economies of scale, as service providers can leverage their expertise and resources to handle multiple clients’ freight bill processing needs.

Focus on Core Competencies

Freight bill processing is a time-consuming administrative task that can divert valuable internal resources away from core business activities. Outsourcing this function allows companies to concentrate on their core competencies and strategic initiatives. By delegating non-core tasks to external experts, businesses can improve overall efficiency and productivity.

Access to Expertise

Outsourcing freight bill processing provides access to specialized expertise and industry knowledge. Service providers often have dedicated teams with experience in handling various types of freight documents, understanding industry regulations, and working with different carriers. They stay updated with industry trends, technologies, and best practices, ensuring accurate and efficient processing.

Scalability and Flexibility

Outsourcing allows for scalability and flexibility in managing fluctuations in freight volumes. During peak seasons or periods of increased shipping activity, outsourcing partners can quickly scale up their resources to handle the additional workload. Conversely, during slower periods, companies can scale back the outsourcing arrangement to match their needs, avoiding the costs of maintaining excess capacity in-house.

Improved Accuracy and Efficiency

Professional freight bill processing service providers often employ advanced technologies, such as optical character recognition (OCR) and automation tools, to enhance accuracy and efficiency. These technologies can extract data from freight documents more accurately and quickly than manual entry. Automated systems can also perform validations and checks to minimize errors and discrepancies.

Enhanced Data Visibility and Reporting

Outsourcing freight bill processing can provide businesses with improved visibility into their transportation costs and performance metrics. Service providers can generate customized reports and analytics, offering insights into shipping patterns, carrier performance, cost trends, and exceptions. These reports can help companies make informed decisions, negotiate better rates, and identify areas for cost savings and process improvements.

Compliance and Risk Mitigation

Freight bill processing involves compliance with various regulations, contractual agreements, and industry standards. Outsourcing to experts familiar with these requirements can help ensure compliance and mitigate risks associated with inaccurate or incomplete documentation. Service providers can assist in managing exceptions, resolving disputes, and maintaining audit trails, thereby reducing potential liabilities.

It’s important to note that while outsourcing offers several benefits, choosing the right outsourcing partner and establishing clear communication channels and service level agreements are crucial for successful freight bill processing outsourcing.