June 17, 2024 | Page 36

SPECIAL ADVERTISING SECTION

FREIGHT PAYMENT

Shippers require additional services , software and technology “ because they just don ’ t have the time or resources ,” he added .

“ With the economy the way it is and [ our ] customers laying off employees … there just isn ’ t [ enough ] people at shippers to do the necessary work in many cases ,” Snavely said .

Despite this , the freight auditing and payment industry itself has been undergoing consolidation , with more looming . This is partly due to shippers increasingly requiring payment and auditing services on a global scale .

“ You have to have brick and mortar outside of North America . You have to have people who speak various languages , know the rules , regulations in [ countries in ] which you ’ re processing invoices ,” Snavely said .

“ You need to have the ability to remit payment and foreign currencies . The requirements and the depth and breadth and reach of the freight audit payment industry has really expanded ,” he added . “ Not everybody ’ s going to be able to do it globally , and that ’ s why you ’ ll see a pronounced consolidation within our industry .”

Many North American companies that use FAP companies ’ services domestically are beginning to apply these to their operations in other regions to gain a more complete understanding of their supply chains .

“ We still run across many multinational corporations that are either still doing the freight audit payment inhouse or they ’ re only doing it in North America ,” Snavely said .

There is friction in this process , however , with decision makers often lacking sufficient authority to outsource FAP functions at their companies ’ foreign operations . Colleagues in overseas offices may also resist such a change due to potential job losses .

Regardless of the probability of additional consolidation in the industry , there remains room for smaller , more agile startups with a truly different product offering to thrive , noted Parvez Mansuri , CEO of Advent eModal .

“ It ’ s not impossible for a new startup to enter the sector , make a difference and scale quickly ,” Mansuri said .

The COVID-19 pandemic and its aftermath highlighted a longstanding need for shippers to digitize and automate additional workflows . This created an opportunity for private equity and venture capital firms to fund startups aiming to disrupt the freight auditing and payment industry by providing superior , more costeffective solutions to ongoing problems stemming from historical inadequacies in the sector ’ s operations .

“ That led to significant innovations , not least in AR-AP [ accounts receivableaccounts payable ] functions , automating them and deploying generative AI for auditing and predictive AI for estimating container dwell times , for example ,” Mansuri said .

“ It ’ s an interesting opportunity for incumbents and any large provider in adjacent markets that believes it has applicable software that can scale easily . There will be significant competition , and I welcome it ,” he added .

Confidence

CT Logistics ’ 101 years of experience has allowed the business to create a broad range of freight cost validation , allocation and reporting solutions — all tailored to meet clients ’ unique requirements . As one of the preeminent providers of freight payment services and transportation management solutions , CT provides you with a foundation of confidence . The company will work with you by creating customized business solutions so clients can focus on their firm ’ s core competencies . Together , we will ensure an efficient , effective and robust supply chain management system for your global needs . Trust Firms of all sizes have relied on CT Logistics to assist them in making solid , informed decisions regarding their freight audit , payment and business intelligence needs . CT ’ s team of professionals has been instrumental in assisting clients in leveraging expertise , technology and best-in-class processes to maximize return on investment . SOC-certified and ISO 9001:2015-certified processes ensure stringent controls , trusted payments to your transportation partners , and the delivery of meaningful and insightful management information . Leadership CT Logistics is a leader in the freight payment and transportation management industry . With CT ’ s enterprise level software for freight management , including FreitRater™ and

FreitLion™ for TMS , AuditPay™ for customized solutions for global freight payment , and the TranSaver™ group buying program , the business will exceed your expectations . CT creates customized solutions that will keep your company focused and in control of the ever-changing needs of global business , allowing your firm to focus and maintain a competitive advantage , remaining a leader and ahead of the competition to ensure leadership in your market . Confidence , trust and leadership : Traditions since 1923 All of these attributes are woven into CT ’ s corporate philosophy , which is the foundation and tradition that clients have relied on since 1923 . Just as important is the future that the CT Logistics team will help you build . CT ’ s services and software are evolving and expanding to provide you with the latest leading-edge applications and systems that will enable you to better manage and reduce supply chain costs while adding more visibility , control and insight to your organization , positively impacting your bottom line . That ’ s our commitment to you . n

36 Journal of Commerce | June 17 , 2024 www . joc . com