Achieve effective transportation/logistics debt collection and enhance CX
The transportation and logistics sector faces unique challenges when it comes to managing collections for ground, air, ocean, transportation, freight, and shipping debtors. These stem from a variety of factors, including:
- Complex billing systems
- A large volume of daily receivables
- Pressure to maintain a smooth customer experience
- Supply chain challenges as a result of COVID-19
The industry’s nature often results in intricate and diverse ways that debt is accrued and accounted for, ranging from monetary debts to freight. This complexity demands a thorough understanding of the sector and efficient systems for managing receivables.
Balancing efficient debt collection and superior customer service often poses a significant challenge for transportation and logistics companies. At Radius Global Solutions, we specialize in accounts receivable management and CX strategies for these industries.
Read on to discover how outsourcing these strategies can offer significant benefits for your business!
The need for an outsourced commercial collections company
Transportation debt collection agencies play an integral role in assuring the financial stability of businesses in this sector. They specialize in recovering monetary debts and freight, armed with a comprehensive understanding of the unique debt situations in the transportation industry. Their proficiency in accounts receivable management helps to minimize the internal burden of debt collection, allowing employees to focus on their core competencies.
Agencies like Radius employ proprietary technologies for streamlined, consistent debt collection processes. Telematics, GPS fleet tracking systems, and ELDs (electronic logging devices) are adopted to improve transparency and minimize errors along the way.
Accounts receivable management agencies are also excellent negotiators. They can effectively explain the debt collection situation to debtors, negotiate payments, and expedite the recovery process. This way, your company can avoid cash flow challenges without spending hours of time managing overdue invoices on your own.
By outsourcing debt collection processes to these agencies, transportation and freight companies can significantly reduce their Days Sales Outstanding (DSO) and improve their cash flow.
How to enhance the customer experience while collecting debts
According to KPMG International, 71% percent of transport and logistics executives say customer-centricity is either a top or a high priority. As we mentioned earlier, enhancing the customer experience while also collecting past-due debts is a delicate balancing act. However, it’s an important balance that businesses must find in order to ensure a positive customer experience.
Transportation and logistics debt collection agencies like Radius can offer a tactful approach that upholds the debtor’s dignity while resolving outstanding balances efficiently. By clarifying collection situations, negotiating payments, and recovering debts swiftly, we ensure the process is as stress-free as possible. This helps to reinforce their trust and loyalty for years to come.
A customer-centric approach to transportation debt collection not only recovers debts, but also turns a difficult situation into an opportunity for building stronger relationships.
Solving a major transportation company’s accounts receivable challenges
A major railway company needed a partner who could perform first-party accounts receivable management with over $2 million in daily receivables. Their goals were to reduce Days Sales Outstanding (DSO) while improving CX with minimal ramp-up time.
To help the railway reach its goals, the Radius team recruited a dedicated staff with experience in the rail industry. We developed an in-house training program with the client to drive success. Then, we built protocols for team members to communicate directly with the client to resolve disputes and answer questions.
The outcomes were impressive:
- The company experienced a significant decrease in their DSO, indicating faster payments and prompt resolutions.
- Customer satisfaction ratings saw a significant uplift through a dedicated staff with expertise in the rail industry.
- Radius exceeded the client’s goals within the first month – and continued to do so each month thereafter.
This case clearly illustrates how successful accounts receivable management can coexist with exceptional CX in the transportation industry.
Resolve outstanding debts with a commercial collections partner
Partnering with a transportation debt collection agency like Radius Global Solutions offers several compelling benefits for your business. By turning potentially unpleasant interactions into opportunities for relationship building, we can not only recover debts, but also contribute to customer retention and word-of-mouth referrals.
Reach out to our team today to find out how we can help streamline your accounts receivable management processes.
