Data is the Key to Unlocking the Value of Your Back Office Documents. Use it Wisely.

While back office documents certainly aren't the most exciting part of your business, they're an incredibly critical element to its success. They capture imperative shipping details, provide legal proof, and produce figures used to create viable billables.

But what documents are we referring to exactly, and what happens with the information on them? Let's look at some of the four most commonly underrated back office documents patiently waiting atop a not-so-obvious launchpad of serious growth power.

1. Proof of Delivery (POD)

The proof of delivery document helps you prove package delivery and helps your clients understand the necessary details of the delivery. Both the deliverer and the consignee will dictate any missing or damaged items upon shipment in the POD form, which may be a delivery receipt or a copy of the freight bill.

Ensuring that information on all aspects of the POD is correct is crucial. Not only does the POD act as proof of delivery, but it also functions as a document of title, an important piece of compliance paperwork, and an insurance form that shows quantity, weight, and manufacturing information.

This means that carriers have to process a POD for every single delivery. Processing, analyzing, and categorizing these forms can be a pain point. Filling them out incorrectly is pure nightmare fuel.

2. Bill of Lading (BOL)

The bill of lading is the agreement between an LTL carrier and the shipper that spells out the delivery details. It includes a variety of fields, including:

• Shipper
• Consignee
• The freight terms
• Any additional charges (e.g., liftgate charges, etc.)
• Type of cargo being shipped
• Bill of Lading number
• Detailed instructions
• Details of the cargo itself (e.g., weight, class, etc.)
• C.O.D. request
• etc.

All of these pieces of data need to be 100% accurate. The Bill of Lading is a legal document admissible in a court of law, and incorrect data can lead to significant consequences. The bill of lading also dictates the costs associated with the cargo. So, having any issues in your Bill of Lading fields can also directly impact your ROI. That's something you want to avoid!

Unfortunately, there are hundreds of BOL formats and templates. This can cause friction with your in-house staff, leading to data entry issues. These issues can increase turnaround time, reduce workflow fluidity, and even send packages to the wrong place.

3. Manifest

The manifest is the form that outlines the shipment details for customers and other authorities. It details critical cargo information like weight, the value of goods, size, etc., and also lets customs know where the shipment is going and who is receiving it. Typically, many of these details are taken from the Bill of Lading. So, if a mistake is made on the BOL, that mistake may carry over to the manifest, creating further logistical chaos.

Since this document is directly used by customs, ensuring that it is accurate and free of error will ensure that your packages get delivered to the right place and customs don't take any issues with your shipment — which can cause severe headaches for you and your drivers.

4. Freight Claim

Whether for damages, lost items, or shortage (or even concealed shortage), freight claims play a valuable role in the shipping ecosystem. But it's vital to ensure that you fill them out and process them correctly. Since claims are legal documents, accuracy becomes a compliance issue immediately. Inaccurate data or filing of these forms can lead to penalties and fines from regulatory bodies or even the court of law.

In-house vs. Automated Form Capture

There are three primary methods for filling out these essential freight documents. You can fill them out in-house with your internal billing staff. You can automate the process to ensure all data is inputted rapidly and accurately. Or, you can use a hybrid approach where you automate specific data fields and use manual pour-over for more detailed fields (like cargo details or specific customs instructions.)

In-house data entry processes are prone to error. Simple billing discrepancies can become an accounts receivable nightmare, which can stop your revenue potential dead in its tracks. You promise your customers that you will deliver their freight to the correct destination at the right time. Why should poor data entry threaten your reputation?

According to a recent McKinsey report, up to 45% of current paid activities (especially data entry) can be automated. Humans are amazing at solving complex problems and dealing with unique situations, but we're typically not the best at manual data entry. It can be boring and drawn-out, and, well, we make mistakes. Unfortunately, these mistakes are magnified regarding freight back office processes.

The transportation industry as we know it is at a crossroads. Remaining competitive requires agile strategies and about as much cost-cutting as possible. A single incorrect field on a BOL or POD can cost thousands to rectify, and multiple incorrect fields over multiple documents time will be noticeable and painful. 

Benefits of Automated Freight Data Capture

Many carriers and 3PLs still rely on in-house, manual processes to process data. In fact, some companies have full-time employees solely dedicated to data entry and quality control (QC). For years, this has been the go-to model. But with the rise of automation technology, does it still make sense to spend your staff's valuable time on these business processes?

Our Auto-Extraction & Structuring solution allows you to create customizable back office processes powered by machine learning that best serve your needs.

1. Increased Efficiency & High Accuracy

With automation, you can eliminate costly errors, giving you the ability to set up machine-learning workflows that improve overall efficiency while producing higher accuracy. DDC's Auto-Extraction & Structuring solution leverages machine-learning algorithms to discover, analyze, and cluster unlabeled datasets without the need for human intervention to process data rapidly and accurately. Better data out means faster money in.

2. Higher Overall Productivity

Freeing workers from the chains of in-house documentation processes allows you to focus your people power on more critical tasks — like driving, problem-solving, and customer service. Auto-Extraction & Structuring eliminates data entry as a touchpoint while increasing your overall business agility and cash flow.

3. Cost Reduction

Automating your data entry reduces your overhead spent on employee time, eliminates expensive mistake-correcting costs, and improves your overall recurring revenue with more muscular client retention based on a better customer experience.

4. Rapid Turnaround

Within seconds upon receipt, the AES solution turns around and delivers structured data, putting shipment data in your hands instantaneously. As you bust through bottlenecks, you'll see an increase in happy customers and reduced days of sales outstanding (DSO).

Our Auto-Extraction & Structuring solution was built from the ground up to handle freight data entry and processing. It's fast, scalable, reliable, and intelligent enough to streamline your data entry processes and reduce errors.

According to long-time DDC partner Estes Express Lines, speed, accuracy, and cost containment are the core benefits of DDC's solution that will improve their LTL operation.

"We all need to be automating more and increasing efficiency levels," said Tad Blackburn, vice president of administration for Estes. "DDC's solution allows us to achieve these goals."