In the fast-paced world of logistics, Transportation Management Systems (TMS) are at the core of every shipper, broker, and carrier operation. However, a critical piece often gets overlooked: the accuracy of freight rates. Without reliable, efficient rate management, even the best TMS systems can create inefficiencies that ripple throughout the entire shipping process.
Inefficient Rates Lead to Incorrect Mode & Carrier Selection
One of the biggest issues facing many TMS users is inefficient rate management — this often leads to incorrect decisions that cost businesses dearly. When rates aren’t accurate, the wrong shipping mode is chosen, or the wrong carrier is selected, leading to:
- Longer transit times or increased costs by using more expensive modes or routes
- Lost business if your rate management system can’t keep up with customer requirements
And if that wasn’t enough, inefficient rates often lead to invoice issues, one of the most frustrating and costly challenges in logistics. Poor rate generation — whether due to incorrect rates or lack of visibility into accessorial charges — can quickly snowball into invoicing mistakes, making it harder to maintain profitability and relationships with partners.
Enter G2Mint’s AI-Powered Rate Engine: The Complete Solution
G2Mint’s AI-powered Rate Engine is here to solve these complex rate issues. With our highly configurable, modular solution, TMS users can finally move beyond manual calculations, outdated systems, and inefficient rate management.
Key Benefits of G2Mint’s Rate Engine:
- Comprehensive Webservice Offering: G2Mint accounts for all accessorials, including fuel surcharges, discounts, and service-level fees — ensuring that every aspect of your rate is factored in.
- The “Overlay” Concept: Layer multiple rates on a single shipment, so you can quickly compare options, choose the most cost-effective solution, and avoid errors in mode or carrier selection.
- API-First Integration: Easily integrate G2Mint into your TMS with our robust API, ensuring that rates are accurate in real-time and can be adjusted dynamically as needs change.
- Highly Configurable & Scalable: Whether you’re managing complex rates, or negotiating accessorials across multiple modes or carriers, G2Mint adapts to meet your needs without custom development.
The Real Cost of Poor Rate Generation: Invoice Issues and Errors
When rates are incorrect or misapplied, it’s not just a matter of choosing the wrong mode or carrier — it can lead to serious invoice disputes. Here are some common issues tied to poor rate generation:
1. Incorrect Application of Negotiated Rates
Carriers often apply outdated or incorrect rates, especially if rates have been recently renegotiated. A failure to apply new rates means you’re paying more than you should — or your rates aren’t competitive with what’s available in the market.
2. Miscalculated or Misapplied Fuel Surcharges
Fuel surcharges fluctuate, and carriers may use the wrong percentage or outdated rates when billing. This simple error can lead to discrepancies in the final invoice and disputes with clients.
3. Failure to Apply Discounts
Shippers and Brokers are sometimes overcharged when carriers neglect to apply negotiated discounts or contracted pricing. Without real-time access to accurate rates, these errors happen far too often.
4. Incorrect Freight Classification
In the case of less-than-truckload (LTL) shipping, misclassifying freight can trigger reclassification charges. This mistake often leads to higher fees than expected and disrupts financial planning.
5. Billing for Services Not Performed
It’s not uncommon for carriers to mistakenly charge for premium services or add-ons that weren’t actually provided, such as liftgate use, inside delivery, or residential delivery. These unnecessary charges pile up quickly.
Other Common Causes of Invoice Errors
In addition to rate issues, there are several other common factors contributing to invoice discrepancies:
1. Accessorial Charges
Unexpected fees for additional services — such as residential delivery, liftgate use, or detention fees — are often applied incorrectly or without prior warning, causing friction between shippers and carriers.
2. Human Error
Clerical mistakes, such as incorrect data entry or duplicate invoices, are a major source of billing problems. In manual processes, these mistakes happen frequently, leading to unnecessary disputes.
3. Weight and Dimensional Discrepancies
If a carrier’s measured weight or dimensions differ from those on the bill of lading, it can lead to re-weighing and, ultimately, adjusted final charges.
4. Lack of System Integration
When shippers, brokers, third-party logistics (3PLs) providers, and carriers are using disconnected systems, billing discrepancies arise due to inconsistent data and manual input errors.
How G2Mint Fixes These Problems
G2Mint’s AI-powered rate service removes the guesswork and inefficiencies by providing real-time, accurate rates, while factoring in all aspects of your freight cost structure. Here’s how we tackle common invoice issues:
- Correct Rate Application: G2Mint ensures negotiated rates and contracted discounts are always applied correctly, avoiding issues with outdated or misapplied pricing.
- Real-time Rating: Fuel surcharges, discounts, and accessorials are all automated via an api call, ensuring accurate invoicing.
- Seamless Data Integration: G2Mint integrates seamlessly with your existing TMS, ensuring that every rate and charge is factored into your billing and reconciliation process, eliminating human errors and inconsistencies.
Unlock the Benefits of AI-Powered Rate Management
G2Mint’s AI-powered Rate Service provides the tools and insights necessary for accurate rate generation, faster decision-making, and optimized costs. When you reduce errors, streamline rate calculations, and ensure correct billing, you’re able to:
- Improve operational efficiency by eliminating manual processes.
- Reduce invoice discrepancies and disputes with carriers.
- Make better decisions in mode selection, carrier partnerships, and rate negotiations.
- Gain a competitive edge by confidently bidding on new projects with accurate, comprehensive rates.
Ready to Improve Your Rate Management?
It’s time to move beyond inefficient rates and billing errors. G2Mint’s AI-powered Rate Service gives you the power to optimize your rate management processes and reduce invoice issues — all while lowering operational costs.
Request a Demo Now!
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