Global network connection and business communicationA strong supply chain is just that: a chain, in which the whole is only as strong as its weakest link. So when even one part of the chain breaks down, so does the entire chain.

When the supply chain is functioning as it should, everything goes smoothly. The consignor or shipper hires a freight broker or agent; the freight broker or agent hires a carrier; the carrier delivers goods to the consignee or receiver, and everyone is happy — and everyone gets paid.

But as simple as this may seem, there’s a lot of trust going on there. Each party must trust that the others will choose the right partners to work with and will perform their duties in a timely fashion. Since that doesn’t always happen according to plan, Mountain States Commercial Credit Management offers complete credit management services to help you

  • evaluate shippers, carriers, and brokers.
  • monitor supply chain partners using credit data, so you can make proactive decisions about your agreements.
  • collect from the non-paying parties.

MSCCM has a deep knowledge of credit management in general and about the transportation industry in particular. That’s important, because in a supply chain situation, there are many factors that can interfere with prompt payment. For example, what happens if

  • a product sustains damages while on a truck but that damage is only discovered by the broker a few days after delivery?
  • a load was delivered two hours late?
  • the refrigeration fails on a food-delivery truck?

What does a carrier do when there’s a loss and the broker offers a discount to the shipper — without consulting the carrier first? Who takes the loss if the consignee refuses to receive the load or to pay the shipper?

Plugging the leak: Credit management stops the trickle effect

Obviously, a supplier who isn’t paid on time is more likely to delay payment to the broker, and the broker is then unable to pay the carrier, who ends up without adequate cash flow to support operations. A failure or non-payment at one step creates problems throughout the chain. That’s what we call the “trickle effect.”

In the transportation industry, support systems are in place to help mitigate these risks. Bond companies provide insurance to help protect carriers from non-paying brokers, and factoring companies help carriers and brokers sustain the cash flow they need to operate.

However, there’s still a lot of complexity and risk involved in the supply chain process. A professional credit management service that has expertise in logistics and transport can be a valuable partner — not just when it’s time for collections, but from the beginning to end of your process.

MSCCM brings our customers a deep knowledge of logistics. We provide the expertise and resources you need to evaluate and monitor your supply chain relationships. And we provide the direct, expert collections process you need to get paid by the right people.

Choose wisely, and reduce the time it takes to get paid.

Stop the “trickle effect” in its tracks and strengthen your supply chain. Contact Mountain States Commercial Credit Management at 800-457-8244, fax us at 303-806-5360, or send a request through our website to learn how. We are always available to answer any questions or assist with a collection.

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