Freight payment has traditionally been a process managed by shippers internally or outsourced by a third-party provider.
Either way, the process isn’t generally thought of as integrated directly into other logistics functions, unless a shipper is using a transportation management system (TMS) with an attached payment capability.
But logistics software provider Turvo said Friday it is entering the payment fray in its own right, aiming to enable shippers to pay carriers and logistics services providers faster than they would under normal circumstances.
San Francisco-based Turvo’s platform is designed around what it calls collaborative logistics, giving shippers the ability to coordinate existing systems and partners in a single workflow. The company’s new product, Turvo Pay, is intended to extend that concept to payment of carrier and logistics vendors.
The payment product is designed to resolve payment delays resulting from errors due to manual data entry and data asymmetry between systems.
“Many of the challenges that delay payments today stem from siloed systems and a lack of common understanding,” Turvo said in a statement. “The payment process involves a number of people across various departments and companies managing time-consuming, error-prone workflows that often require manually configuring and moving data between systems. From proof-of-delivery and invoicing to payment and accounting, the slightest discrepancies can slow things down, tie up resources and cause frustration.”
Users can manage digital documentation and invoicing as an extension of the shipment itself, Turvo said, and then process payment by automated clearing house (ACH), paper check, or by common fleet payment providers Comchek and Electronic Funds Source (EFS). Payments can be scheduled for next-day or three-day ACH options, or automated paper check fulfillment. Turvo Pay integrates with accounting systems including QuickBooks, NetSuite, and Xero.
“Getting our drivers and carriers paid faster with better visibility into the process is essential to building a premium services business like ours,” Brian Kempisty, founder of Port X Logistics, said in a statement. “We can continue building preferred status with our carrier partners while creating internal efficiency for our team.”