As global supply chains grow increasingly complex, the pressure to build supply chain resilience and efficiency has never been greater. One area with the potential to enhance both – and one that’s ripe for transformation – is freight payment solutions.
Many of today’s systems still rely heavily on manual processes, slowing down an industry that can’t afford to wait. In fact, for major transport and logistics providers, managing payments can be just as complex as moving the freight itself.
This presents a serious challenge for companies trying to scale in an increasingly competitive market.
The critical role of speed and transparency
Manual payment processes are more than an administrative headache; they’re a fundamental barrier to business growth. Today’s logistics providers lose countless hours manually processing documents, lining up payments, and responding to carrier enquiries, creating inefficiencies that ripple across the entire supply chain.
Modern network-based payment solutions can combine agile payments with real-time visibility, and can even automate the auditing process, which can transform operations.
Our data shows that by automating settlement solutions, providers have reduced back-office tasks by up to 90%, freeing up valuable resources.
Facilitating collaboration to unlock efficiency
The traditional approach to freight payments has inadvertently created friction within the industry. Even large logistics providers find themselves working with a limited pool of trusted carriers, while carriers themselves remain cautious about new partnerships due to typically lengthy payment terms.
Modern payment solutions break down these barriers by removing friction. When carriers know they’ll be paid within hours rather than months, they’re more willing to join new networks. This expanded carrier network gives logistics providers greater flexibility to meet customer needs and maintain service levels, even during peak periods or disruptions.
Building cross-border trust
For logistics providers operating globally, payment transparency is paramount. Building trust across different currencies and regulatory frameworks has always been challenging. Digital payment solutions change this dynamic entirely. When payments are automated and fully traceable, both parties can spend less time on dispute resolution and more on strategic collaboration.
A digital audit trail means instant visibility into the status of payments, with the ability to catch any potential discrepancies before they become issues. TEG’s new freight audit tool will do this automatically; it can spot discrepancies instantly to reduce invoicing errors. This has the power to transform financial interactions from a potential source of tension to a platform for stronger partnerships.
Additionally, innovations like our sister company Trustd, the market’s first digital ID and credentials verification app, provides another layer of security. Trustd verifies all business and operating information ensuring businesses are legitimate and their banking details are correct and accurate, removing the need for manual checks.
Driving innovation for competitive advantage
Payment technology is becoming more than just a way to pay suppliers – it’s now helping companies grow and adapt.
Take TEG’s integrated settlement solution, SmartPay, as a prime example. It can process thousands of payments in seconds on one platform, and also offers non-recourse finance options providing the kind of ease, security and financial agility needed in today’s fast-moving and massively fragmented market. As an example, a premier time-critical freight business active on the TEG platform, Speedy Freight, transformed their payment processes dramatically using our technology.
Members of the Accounts Payable team would spend days every month working through and paying up to 4,000 suppliers, and they were able to radically cut down this processing time.
By streamlining payments, service providers can work with an expanded network of carriers across wider geographies and also improve their own service offerings. The ability to do so is becoming increasingly crucial as supply chains grow more complex.
The future of freight transport
The transformation of freight payments extends far beyond technology. It’s about building a more responsive, transparent, and interconnected global supply chain.
As customer expectations evolve, the ability to move quickly and collaboratively will become even more critical. The future of transport and logistics belongs to those who can turn financial processes from a bottleneck into a competitive advantage.
- Collaboration & Optimization
- Digital Supply Chain