It’s a bit like getting a text message from your grandmother. At first, it may be kind of hard to get used to, as she used to only call you from her home phone using a rotary dial – but now she’s on all social networks and is able to get an Uber when leaving her doctor’s appointments. There really is no one left standing still when the currents of technology start moving. The Trucking Industry is no different. Outdated methods, policies and procedures are slowly but surely being upgraded and revamped to better serve a dedicated and deserving workforce. The biggest industry breakthrough will have a multi-faceted effect on the way Lumper Payments are made and received.
Safety and Liabilities:
We are seeing a trend in which companies that charge unloading fees are now moving away from cash. One logical explanation for this: Security and Liability – as warehouses are not generally found in safe locations. Before today, they may not have had another choice; however one thing we hear when we meet with distribution companies is that they see no apparent reason in this great digital age to continue allowing their partners to accept cash or checks at their facilities. The instant electronic payment option is a natural upgrade to protect the industry.
High Churn Rate:
Some Freight Handling/Lumper companies themselves came to the decision to no longer handle cash because of high churn rate, stemming from an increased incidence of theft and fraud. In order to improve security for their staff, workers have been forced to create varying routes to the bank when making the daily deposit, in addition to reshaping other general practices in accepting payments on the docks.
Competitive Advantage – Leveling the Playing Field:
When cash or check is your only option, it creates serious difficulties for some shippers trying to remain competitive with the rest of the market, as most drivers will often turn down loads that requires them to either carry unsafe amounts of cash or wasting valuable time waiting for check authorizations. Because of new technology, Drivers can now accept any load without the worry of the loading and unloading conditions on that particular route.
Loss of Time:
Read one of the latest white papers by CH Robinson, as well as one from JB Hunt entitled, “660 Minutes”. They both reveal that one of the largest causes of lost time for truckers on the job is due to loading and unloading delays. Therefore, shippers are put under strong pressure to reduce the time drivers spend at each warehouse. Current time-wasters include processing lumper payment checks over the phone – swallowing up a minimum of 15 minutes per transaction [MyLumper research study through Georgia Tech – FlashPoint 2015], and searching the area for an ATM – as carrying large amounts of cash on the road is extremely dangerous for drivers. Lumper companies will benefit from the new digital technology, as it allows them to move drivers in and out quicker than ever. Now they will have the ability to accept every single transaction – leaving cash and checks a thing of the past.
Paperwork and Visibility:
We are all in the paperless age from phone bills to bank statements – and Shippers are no different. For this industry, digital records are essential – as carriers will soon no longer be tied to matching countless receipts with their corresponding invoices, nor will they need to rely on busy truck drivers to preserve these important documents. Large carriers continue to experience difficulties in keeping up with paperwork, so for this reason among others, paper records have been seen as a negative. Partners are intent on finding better ways to issue payments, while at the same time ensuring good, clean accounting records that can be maintained for years to come.
There’s no arguing that Trucking is absolutely essential to our livelihood – so why force it to adhere to the antiquated ways of life that you yourself have happily left in the past? Remember paying with a check at the grocery store? It feels like an embarrassing lifetime ago. With electronic payment system companies like MyLumper, freight-handling fees are processed digitally from the driver’s smart phone, right on the docks – saving over 83% of the time it takes for those check authorizations to finally spit out an answer. Let’s come together and support new technology and bring some real relief to the trucking and freight handling industry.