One kink in the supply chain can cause a ripple effect that throws the whole process off course. Every business that operates in the transportation industry relies on the professionalism, integrity, and skill of every other partner in the supply chain. A commercial credit management partner like Mountain States CCM can help you use credit reporting to do a better job of vetting shippers, brokers, and carriers — and managing risk.
We all do our job; we all get paid — right?
Usually the process goes smoothly, the load is delivered on time, and everyone gets paid. But not every company is trustworthy, and there’s an element of risk every time you begin working with a company you don’t know.
To keep the supply chain strong, it’s important to perform due diligence so you can be sure you’re forming relationships with reliable partners. A crucial part of that due diligence is collecting company data through the use of credit reports.
For example, suppose a large retailer contacts its broker to arrange a shipment. The broker puts the job on a website to solicit bids; the broker might receive bids from any carrier without knowing the reputation and track record of any of them.
Since one broken link in the chain creates problems that trickle throughout the chain and slow the payment process, it’s essential to be sure the broker is engaging a carrier that can reliably and safely transport the load to its destination. A credit report can help you find out who you’re doing business with.
Your commercial credit management professional is your full-service partner in completing your due diligence.
A complete commercial credit report gives you more than just a cursory look into a potential partner or client’s credit history. It also helps you with portfolio management so you have ongoing information about your customers and clients.
By tapping into current credit data from financial institutions and other business partners, you can make informed decisions about the companies you work with. For instance, a complete credit report tells you
- whether the company is at risk of severe delinquency or even business failure.
- if the company has experienced revenue growth (and is thus ripe for upselling).
- which accounts are improving and which are declining.
That up-to-date data helps you make the best decisions about all the companies you rely on and do business with.
Transportation industry rule: Never skimp on due diligence
The transportation industry moves fast. With shipments happening in rapid succession, it can be tempting to take an attractive bid and move on. But if you are a carrier, is it worth it to do a job and never get paid? If you are a shipper, should you risk damage to your product, customer relationships, and your reputation?
A credit report can provide essential data up front to help you establish relationships with trustworthy companies. A partner like MSCCM that has in-depth knowledge of the transportation industry — as well as commercial credit and portfolio management in general — can help you keep on trucking strong.
Get the information you need to keep your supply chain running smoothly. We are always available to answer any questions or assist with a collection. Please call us at 800-457-8244, fax us at 303-806-5360, or send a request through our website.