In January this year, we launched CloudTrade Logistics, our solution that helps US carriers, freight audit and freight technology companies get 100% validated data from freight invoices with no OCR or human intervention. As we approach the end of Q1, it’s an opportune time to provide an update on how we’re getting on.
The importance of payments to freight cannot be underestimated. Few things slow business quicker than the late administration and execution of payments. Given the challenges that technology has been able to solve in other sectors, it’s hard to understand why such an integral part of the supply chain still suffers from a large number of problems. These problems lead to unnecessary delays, errors, compliance risks and, in the end, costs.
We launched CloudTrade Logistics to solve these problems. By integrating invoice processing and digital data exchange for all parts of the US freight industry, we enable companies to overcome inefficient methods of freight invoice processing, giving them the opportunity to transact digitally with trading partners, regardless of size, maturity or complexity. Our users include logistics companies, business process outsourcing firms and freight payment providers who needed an alternative to EDI and OCR to process and capture data. The list of potential users is long and the potential for cost savings across the industry is great.
We believe that our solution is different from anything else on offer in the freight industry, for three reasons.
1. 100% compliant validated data
We offer 100% compliant, validated data because our product allows our users to create custom-designed business rules and validations that run on the vendor supplied invoice; we don’t mistake an ‘I’ or ‘L’ for a ‘1’ which ensures the data we deliver is 100% accurate data. We remove the issues with incorrect data appearing in data fields such as Tax or VAT, account code or depot location data fields and when this is combined with our rules engine we can put in place controls to ensure that the PO is included and referenced on the invoice, that the PO is valid and sufficient funds available to pay the invoice and in some cases that the item/ship codes are correct – all of this helps the back office matching processes in TMS, ERPs and different finance systems.
A key risk for any business is collecting and using bad data. Audit and payment processes can be put at risk and an inability to process payments quickly can lead to problems with carriers and shippers. Even if a company uses compliance programs and systems that guarantee they remain compliant for tax and customs requirements, if the problem occurs at source, where data is inaccurately collected, mistakes will be made. This can lead to a delay in payment, increased audit activities and extra expense – and it’s one reason why CloudTrade Logistics is so useful for our customers.
2. Our solution is powerful
Our unique approach to data capture means we are able to collect a large amount of data from an invoice. Most organisations make do with capturing “header-level” data only. But we go beyond this, capturing as much (or as little) information as our customers require, giving them the data they need for their back office systems and with the added benefit of being able to understand their detailed spend profiles. This means a company can process files and payments faster than ever before, whilst longer term, identifying and capturing incorrect spend from the detail on complicated invoices.
3. Our solution is fast and transparent
We designed our solution to increase ‘Inbound Invoice Velocity’, which is a positive for all parties, as it means that payments can be made earlier, early payment discounts can be applied and cash/working capital can be made available immediately. Using CloudTrade Logistics also means that an invoice is always visible through the capture process, from when it’s been received, converted and then sent to the back office system.
Our solution can convert complex multi-bill carrier/shipment invoices into unique document sets for separate processing in the back-office systems; we can work with a single multipage document containing 1,000’s of pages, or process multiple files contained on one email – we haven’t failed a challenge yet! We know, it can take a manual operator using a key-to-screen or OCR solution up to 30 minutes to capture the data on a multi page shipment or complicated invoice. CloudTrade Logistics completes this task in a matter of seconds.
Our solution is built upon our unique Gramatica technology and it offers 100% accuracy for most major carriers. Further, it’s also the first solution of its kind to allow freight payment providers, third-party logistics and business process outsourcing partners to increase efficiencies, cut operational costs and increase throughput, by doing away with the manual or OCR processing of PDF and paper invoices which invariably produce errors.
We have recently launched the product into the freight and logistics market, and it’s been received very positively. We’ve seen an increase in new enquiries, our carrier reach is expanding and we have been working with our existing clients in the industry to help them increase ‘invoice velocity’.
Our plans for the future of CloudTrade Logistics include pushing further into the US. In time, we’re also looking to build upon our existing offering, enabling clients to process other complex documents that need rules and validations running against them. But that’s for the future.
For now, we’ve been delighted with the positive response we’ve had from US users and we look forward to working with them throughout the rest of 2019. Our focus will be on working with key partners and helping as many users in the freight and logistics industry as possible, providing a simple, best-in-class technological solution to a problem that we feel should have been fixed a long time ago.