What is the “true cost” of processing a freight bill?

✍ Scribed by Howard K. Bass; Ashish Garg; T.J. Iijima

• Publisher: John Wiley and Sons
• Year: 2002
• Tongue: English
• Weight: 419 KB
• Volume: 14
• Category: Article
• ISSN: 1044-8136
• DOI: 10.1002/jcaf.10139

✦ Synopsis

Abstract

In the current downturn, managers are searching for the so‐called “hidden fat” in their
departmental budgets. One area where focusing management attention could yield substantial value is the frequently
neglected accounts receivable (A/R) function. This article seeks to provide finance professionals
with rigorous estimates of A/R costs in the commercial freight industry. While pure processing costs are
significant, implicit financial costs such as receivable carrying costs can run up to three or four times higher
than processing costs. Web‐based payment solutions will continue to provide sterling opportunities to
improve relationships with trading partners, to save time, and to improve profit margins by cutting costs.
© 2003 Wiley Periodicals, Inc.