From TriumphPay Chief Technology Officer Mike Mangina and Product Director Gareth Wolfe
In the United States, the trucking ecosystem is based on a model of trust, but verification when it comes to ensuring the successful performance of services under an agreement. In addition, voters have historically remained very protective of their patented data, for good reason. Many of the inefficiencies in the ecosystem are rooted in these two truths.
Factors need to believe that the invoices they buy are accurate and complete. To guard against fraud, they should check some of the invoices they buy because they provide liquidity to the carrier 30 or more days before they (hopefully) are fully paid by their debtors. If possible, factors would like to check every invoice that arrives. Due to the manual nature of many audits, which are exacerbated by the explosive growth of factoring volumes, they agree to audit only the proportion of invoices and develop detailed risk mitigation policies. this fact.
Brokers face the same dilemma. They need to check every invoice they receive to make sure it meets the requirements of their customers ’accounts and that they have contractually agreed to pay the carriers. Once they send these invoices to their customers, shippers now perform a manual check of documents and data items that are sent through several stops in the ecosystem before reaching them.
What would this ecosystem look like if we could find a way to get rid of the need to check? How could we simplify our processes if this trust was strengthened as part of the network? At TriumphPay we make this a reality. With more than $ 236 million and 100,000 transactions, we connect carriers, factors, brokers and shippers with seamless access to reliable data. Best of all, we do this in a way that everyone retains ownership and security of their data.
Through a network of payments, factors receive data on the loads of their customers, and only their customers, at the time of booking. They receive detailed information, including origin and destination, rate, equipment and other items that allow them to help their customers make fuel decisions, compare workloads and other value-added services. This factor also avoids the time and expense of conducting a pre-purchase inspection. Imagine a world where the factor had data from a source of truth about the load and no longer faced the risk of acquiring a fake account? This is what the payment network provides.
Once the factor has bought an invoice, the factor sends an invoice in the form of structured data to the broker that matches the load and is verified for the correct amount. This eliminates manual indexing performed by the broker, which allows you to increase margins and more automate the approval of invoices. The broker can also provide automatic updating of account balances to the factor by eliminating time-consuming calls or emails to which they must respond.
Over time, the same connection will be established for shippers. By connecting all parties in these transactions with accurate, up-to-date data directly from the source of truth, TriumphPay strengthens trust in the transportation ecosystem. The time and money spent on checking invoices is coming to an end.
Of course, this is just one of the security issues you need to worry about. Reliable knowledge of the truth of your transactions is valuable only if your data is also protected. TriumphPay knows that data privacy should be one of our core values. From using industry best practices, including encryption throughout the technology stack, to making security part of our software development process, we know you depend on us to preserve your data. More than 500 brokers and 70 factors trust our proven technology every day.
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