Pat Dillon, Chief Financial Officer of Flock Freight, is all too aware of the inefficiencies that afflict the freight industry: semi-empty cars boost expenses for enterprises that rely on trucks to stay in business — and take money out of owner-operators’ pockets.
The problem originates from notoriously complex financial flows. Trucking has traditionally been a “highly fragmented” sector, with most players controlling only a small portion of the market. Because there are so many parties involved, the financial component of the process should be automated as much as possible.
Flock Freight uses “artificial intelligence to find the optimal match of shippers and other cargo to pool freights.” The company employs a “mix of [Flock Freight’s] own proprietary systems” for accounts payable and receivable.
The significance of speed
Flock Freight seeks to “increase the timeliness and integrity” of its accounts receivable, making it easier for parties to do business with them. Dillon, on the other hand, stated that the company strives to make “the transaction process as frictionless and joyful as possible for both sides of the customer base.”
He feels that because Flock Freight is located in the “heart of a two-sided economy,” “customer satisfaction on both sides of those marketplaces is very important.”
This involves making the transaction as straightforward for the shipper as feasible. A large store that has to transfer some freight does not “want to call or talk to someone since it is inefficient.”
It also includes “real-time digital tracking and collaboration with the asset-based carrier on the opposite side to guarantee clients know where their goods are en route.” Aside from the shipment’s location, it is advantageous to be forthcoming about any unexpected payments that may arise as a result of an occurrence, such as a delay.
This is accomplished by sharing “upfront about exactly what charges were incurred in order to realize precisely that the route was properly finished.” Transparency about any delays is essential since who pays for them is determined by who is to blame.
“Sending a bill 30 days later that says, ‘By the way, there’s this additional charge,'” Dillon added, “doesn’t really work for our shipper clients.”
Because its product is unique, Flock Freight confronts major challenges. Most freight carriers only have two departments since they aren’t used to dealing with pooled shipments. They are less-than-full truckload and full truckload.
Dillon believes that you must meet clients where they are. “Their transportation management system does not provide a drop-down menu from which to select a shared truckload.”
