Supply chain financing is a modern day buzzword that has been gaining traction in the trucking and hauling industry.
In fact, there are multiple articles outlining its use to finance freight businesses. But what does it mean for companies that utilize short haul trucking to conduct business and how can it be an integral part of a business improvement strategy?
With an uncertain economy, construction-related business need to be prudent. Cost savings and preserving cash are paramount to providing security. While most organizations look at hauling and dump truck services as an expense, Iron Sheepdog offers a proven way to manage the fleet using digital tools that save time and money. The platform goes even further to streamline invoicing and payment options so that companies benefit from having to make only one payment. Haulers are paid directly from Iron Sheepdog on their terms so companies are able to hang on to cash.
As a digital solution, Iron Sheepdog eliminates paper tickets, manual timekeeping and the need to cut multiple paper checks each week. One automated invoice each month outlines the trucking expense with data and documentation to certify accuracy. Payment terms are typically 30 days, with flexible options to extend, if needed.
Haulers are small business, so access to payment is often critical. Having to pay haulers before jobs are paid out can be a cash flow issue for companies. Good business practices are important when the economy is strong, but the recent COVID-19 pandemic has brought a great deal of uncertainty to the market. Companies with an eye on savings and best practices need to consider how technology becomes the part of the solution.
How does it work, exactly?
When companies utilize dump truck services through the Iron Sheepdog platform, they can set up jobs, specify how many and what kind of trucks they need and set the rate. Haulers accept jobs via the Iron Sheepdog app. They check in and out of jobsites, collect tickets and signatures electronically. The resulting task report is then generated and sent electronically to the company for review and approval. Once approved, the trucking expense flows to an automated monthly invoice for the company with net 30 terms, but the funds are available to haulers the very next day.
It is that simple and it is a supply chain financing win/win.
