Priority1: It’s About Time
As a third-party logistics company with average annual growth of 37%, Priority1 knows that its back-office management requires strong coffee.
Keeping up is never easy, but there was a time when it was much more difficult. In Controller Nate Hasting’s words, “We continued to set monthly sales records, but our operation was not scalable with respect to expansion. And though our key metric, Days Sales Outstanding (DSO), was better than the industry average, it could be improved.”
Nate and Financial Assurance Manager Troy Lampley knew their process had to evolve. After determining that technology might have the biggest impact on LTL billing, Priority1 chose HubTran.
No pain, more gain.
Priority1 was stuck like other 3PLs: They assumed that the misery of invoicing was just part of doing business. “Our biggest struggle was going to each carrier website to get the paperwork necessary to invoice. We had to maintain a big master list because each customer’s requirements differ." But Troy was surprised at how effortless HubTran made the process. “Our DSO shrank by four days, going from 30.83 to 26.58.” Not bad.
Still caffeinated, now automated.
With HubTran, batching and reviewing invoices is simple. After that, they’re automatically sent to customers with exact backup requirements, either via links or emails with documents attached. Nate says, “It can be time consuming getting and sending documentation. We never knew when emails and files were rejected from servers.” You heard the man: No checking and double-checking.
Okay, it’s about money, too.
Troy on the financial benefits of HubTran: “Time spent preparing invoices is nearly gone. We save $1,400 on postage each month. HubTran also allows us to assign all costs to the right carrier invoice, while ensuring that we do not pass on costs we cannot contractually bill for. Collections are easier because objections are eliminated. When there’s a dispute, it’s simple to direct the customer to all the supporting documentation.”
It just works.
The magic happens each night when HubTran accesses carrier websites to pull down the required backup. Those documents then automatically attach to their matching loads in Priority1’s TMS, MercuryGate. Then, with the rates and invoices validated, data flows back to HubTran where invoice packets are created for each customer. “HubTran provides a seamless integration with MercuryGate and provides additional back office and accounting functionality,” says Nate.
Nobody likes change. But listen to Troy.
“HubTran worked with us during implementation to customize workflows. Starting up was easy. There was minimal training required and zero ongoing IT support. Every new customer we add gets set up fast, with all their preferences captured in HubTran.”
“Trust the process and the results will follow.”
Troy has always had this mantra taped to his wall. Until Priorty1 started using HubTran, he had no idea how true it was.
"Our DSO shrank by four days... Time spent preparing invoices is nearly gone."