1. Corporate Information
  2. Document Handling Costs
  3. Transporting Documents Costs
  4. Document Storage & Searching Costs
  5. Late Payment Penalty Fees
  6. Audit Preparation
  7. Invoicing
  8. AR (Cash Flow)
  9. You Will Save

Corporate Information

How to calculate it:

Think of your staff who spend time on document administration activities (including searching for files, indexing documents, handing approvals, printing invoices and their supporting documents etc.) and the average hourly rate for those employees.

Next Step: Document Handling Costs

Document Handling Costs

Document_Handling.png

Why it matters:

Synergize eliminates the need for manual processing large quantities of data coming into your business (driver applications, OS&D claims, carrier contracts, BOLs, etc.).  Any type of data can be captured and indexed directly into Synergize through inbox monitoring, optical character recognition, FTP upload, hot folders or saving directly from email. 

Automation and workflow will then move documents throughout your organization to the correct people and departments and helps facilitate the processing of the data, meaning your staff can spend less time with paper and more time on productive tasks like handling exceptions. 

 

Next Step: Transporting Document Costs

Transporting Documents Costs

Transporting Documents

Why it matters:

You can’t bill your customers until the critical trip documentation is back at head office. Often, that requires drivers to scan documents at truck stop scanners or mail them into head office. Meanwhile, someone at head office receives those documents, prints and scans them or emails it to the correct department for processing.

Synergize allows data and documents to be captured in any form and stores them in a secured repository accessible to staff from any location. This eliminates the need to mail paper from different terminals and reduces or eliminates the high (and recurring) costs associated with scanning documents at truck stops.

Next Step: Document Storage Costs

Document Storage Costs

Document Storage

How to calculate it:

If you are like most transportation companies, you probably have multiple file cabinets, maybe even rooms or trailers full of documents. Rent, storage, utilities, insurance...those costs add up. Adding together handling, transporting  and storage expenses gives you a realistic estimate for your document expenses today.

Why it matters:

When you are storing documents off-site or physically in your office, your staff spends a significant amount of time (and, by definition, money) on document administration activities such as searching for files in file cabinets and back rooms, requesting access, searching network drives, waiting for approvals, or printing invoices and their supporting documents. 10 minutes here, 15 minutes there—it all adds up.

IDC data shows that the knowledge worker spends about 2.5 hours per day, or roughly 30% of the workday, searching for information.

Synergize eliminates the cost of on-site or off-site storage, and means that documents are available and accessible to staff quickly and easily when they are needed.

Next Step: Late Payment Penalty Fees

Late Payment Penalty Fees

Late Payment Penalty Fees

Why it matters:

Your business has considerable payables for fleet maintenance and shop expenses, carrier invoices and more. Without automation, each invoice received needs to be inspected and matched to the corresponding purchase order or rate confirmation, then approved for payment. This typically means the AP process is manual and time-consuming. Slow processes and no visibility in payments can result in late payments to vendors (and expensive late payment fees) or worse, poor credit with vendors and stoppage of business.

By automating the AP process with Synergize, you can expect late payment fees to disappear and rest easy knowing that your business will keep moving.

Next Step: Audit Preparation

Audit Preparation

Audit Preparation

Why it matters:

Documents stored in storage rooms or trailers run the risk of being damaged by fire or flood. The quality of the document can also be affected, making it unavailable or unreadable during an audit. Not being ready for the information requests of both auditors and regulators presents your business with significant financial risk.

Next Step: Invoicing

Invoicing Costs

Invoicing

Why it matters:

One of the easiest ways for transportation companies to increase cash flow is through speeding up the billing process. The longer it takes for a customer to get an invoice, the longer it takes for them to pay it, and for you to get your cash.

Manual billing processes requires more time to perform activities such as matching supporting documentation to an invoice, printing invoices and their supporting documents and then stuffing and mailing envelopes to clients. The more people involved, the higher costs your costs become.

Manual billing processes also tend to be inconsistently applied, leading to a lack of process control and visibility. Combined with the inability to send billing documents as they are generated, this overly manual paper-based process is likely inflating your DSO and preventing you from monetizing those receivables in a timely fashion.

Next Step: AR (Cash Flow)

AR (Cash Flow)

A/R (Cash Flow)

How to calculate it:

Days sales outstanding (DSO) is a measure of the average number of days that a company takes to collect revenue after a sale has been made. Calculate your DSO by dividing the amount of accounts receivable during a given period by the total value of credit sales during the same period, and multiplying the result by the number of days in the period measured.

Why it matters:

It is in your trucking company’s best interest to collect outstanding receivables as quickly as possible. Regardless of which sector you operate in, collecting cash sooner and shortening your Days Sales Outstanding (DSO) value is of critical importance. Unpaid or late invoices represent actual cash that you could otherwise be reinvesting into other areas of your businesses like purchasing new equipment, hiring new drivers or growing through acquisition.

Next Step: You Will Save

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