3PL Case Study
Better cash flow.
It’s almost like magic.
As a company with average annual growth of 37%, Priority1 needed their back-office systems to keep up. Controller Nate Hasting and Financial Assurance Manager Troy Lampley knew their biggest win would come from streamlining the billing process. As Nate Hasting says, “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.
Like many 3PLs, Priority1 assumed that invoicing misery was just the cost 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.
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.” HubTran eliminated the need to check and double check invoice statuses – saving Priority1 even more time.
With HubTran, Troy notes, “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.”
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.
Plus, start-up was easy. “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.” All the results with none of the headaches.
Less manual labor and better cash flow? It’s almost like magic.
Time spent preparing invoices is nearly gone.
Financial Assurance Manager,
- Not enough back-office personnel to handle growth
- Overwhelming manual invoicing process
- Difficulty answering client questions about invoices
- Improved receivables cycle by 14%
- Spend virtually no time on processing invoices
- $1,400 in postage saved each month