Pat Dillon, the chief financial officer of Flock Freight, is well aware of the inefficiencies plaguing the freight sector: semi-empty trucks drive up costs for companies that depend on trucks to continue in business and drain money from owner-operators.
The problem is caused by notoriously convoluted financial movements. Since its inception, the trucking business has been “extremely fragmented,” with the majority of its players controlling only a small portion of the total market. The financial aspect should be automated to the greatest extent possible because there are so many parties engaged in the process.
In order to pool freight, Flock Freight employs “artificial intelligence to find the optimal match of shippers and another cargo.” The company “combination of [Flock Freight’s] own proprietary technology” for accounts payable and receivable.
The importance of speed
Flock Freight wants to “improve the speed and integrity” of its accounts receivable, making it easier for parties to deal. However, Dillon said that the business attempts to make “the transaction experience as seamless and pleasurable as possible for both sides of the client base.”
He believes that because Flock Freight is uniquely situated “in the center of a two-sided economy,” “consumer satisfaction on both sides of those markets is particularly crucial.”
This includes making the transaction as simple as possible for the shipper. A huge store that has to move some freight does not “want to get on the phone or talk to someone since it is inefficient.” Integrating with the retailer’s transportation management system is a critical step in expediting the process.
It also entails “performing real-time digital tracking and collaborating with the asset-based carrier on the other side to ensure customers know where their product is in transit.” Aside from the shipment’s location, it is beneficial to have openness on any unexpected payments that may come as a result of an incident such as a delay.
This is made possible by communicating “upfront about exactly what expenses were spent in order to comprehend exactly that the route was successfully completed.” Transparency regarding any delays is critical because who pays for them is decided by who is at blame.
Dillon explained that “sending a bill 30 days later that says, ‘By the way, there’s this extra charge’… that doesn’t really work for our shipper clients.”
Flock Freight faces a significant hurdle since its product is unique. Because most freight carriers aren’t used to dealing with pooled shipments, they only have two departments: less-than-full truckload and full truckload.
According to Dillon, you must meet customers where they are. “Their transportation management system lacks a drop-down menu from which to pick a shared truckload.”
